F1 Practice Test Questions Answers Updated 247 Questions
F1 dumps & CIMA Certification Sure Practice with 247 Questions
CIMA F1 exam consists of 60 multiple-choice questions and is three hours in length. F1 exam is computer-based and is administered at Pearson VUE testing centers worldwide. Candidates must achieve a score of 70% or higher to pass the exam and earn the CIMA F1 certification.
One of the key benefits of studying for the CIMA F1 exam is that it provides a strong foundation for further study in the CIMA qualification. It is a prerequisite for many of the higher-level exams in the qualification, such as the CIMA P2 (Advanced Management Accounting) and CIMA E1 (Enterprise Operations). Additionally, the knowledge and skills gained from the exam are highly transferable and can be applied in a wide range of financial roles.
NEW QUESTION # 105
XY purchased a building on 1 April 20X1 for $300,000 with a useful economic life of 30 years. On 1 April
20X7 the building was revalued at $525,000.
What will the new depreciation charge be following the revaluation?
Give your answer as a whole number.
Answer:
Explanation:
$21875
NEW QUESTION # 106
Statements of financial position as at 31 December 20X8 for JK, LM and PQ are as follows:
[1] JK purchased 80% of LM's $1 equity shares on 1 January 20X8 for $260,000 when the retained earnings of JK were $110,000. At that date the non-controlling interest had a fair value of $63,000.
[2] JK purchased 25% of PQ's $1 equity shares on 1 January 20X8 for $90,000 when the retained earnings of PQ were $96,000.
[3] During the year JK sold goods to LM for $32,000 at a mark up of 33.33% on cost. Half of the goods were still in LM's inventory at 31 December 20X8.
[4] LM transferred $32,000 to JK on 30 December 20X8 in settlement of the inter-group trade. JK did not record the cash in its financial records until 2 January 20X9.
Calculate the value of inventory that would be included in JK's consolidated statement of financial position at 31 December 20X8.
Give your answer to the nearest $.
Answer:
Explanation:
$224000
NEW QUESTION # 107
Statements of financial position for FG, IJ and KL at 31 December 20X5 include the following balances:
FG acquired 90% of IJ's equity shares for $358,000 on 1 July 20X5 when IJ's retained earnings were $98,000.
FG acquired 100% of KL's equity shares for $360,000 on 1 January 20X5 when KL's retained earnings were $155,000.
FG used the proportion of net assets method to value non-controlling interests at acquisition.
KL sold a piece of land to FG for $130,000 on 1 September 20X5. At the date of transfer the land had a carrying value of $50,000.
The management of FG expect KL to make profits in the future and no impairment ot its goodwill was proposed at 31 December 20X5.
Calculate the non-controlling interest balance in FG's consolidated statement of financial position at 31 December 20X5.
Give your answer to nearest whole $.
Answer:
Explanation:
$32600
NEW QUESTION # 108
You work in the finance department of an entity. A director has approached you and asked you to falsify sales invoices which would significantly inflate revenue. The CIMA Code of Ethics suggests that you should deal with such an ethical dilemma by following a number of stages.
Place each of the stages identified below into chronological order.
Answer:
Explanation:
NEW QUESTION # 109
An entity purchased an asset for $375,000 on 1 November 20X0 incurring legal fees of $33,000.
Improvements were made to the asset for $65,000 on 1 December 20X2 which qualified as capital expenditure under the local tax rules. The entity also incurred repair costs on the asset on 1 February 20X3 amounting to
$10,000.
The asset was sold for $680,000 on 1 December 20X5 incurring allowable costs on disposal of $15,000.
Indexation on the purchase cost and the improvement are allowable.
The index increased by 20% between November 20X0 and December 20X5,15% between December 20X2 and December 20X5 and 10% between February 20X3 and December 20X5 Calculate the chargeable gain on the disposal of the asset on 1 December 20X5.
- A. $100,650
- B. $90,650
- C. $89,650
- D. $107,250
Answer: A
NEW QUESTION # 110
AB has been asked to analyze the receivables days of an entity with a view to improving the working capital cycle.
The following results have been produced for receivable days:
Which of the following is NOT an explanation of why the days have increased?
- A. An inexperienced credit controller was employed in the last few months of year ended 31 December and requires substantial training.
- B. The entity has transferred all receivables collections to a factoring agency during 20X2.
- C. The entity has increased turnover for year ended 31 December 20X2 by offering extended credit terms.
- D. The entity has made substantial sales to overseas entities in the last few months of the year ended 31 December 20X2.
Answer: B
NEW QUESTION # 111
The following information is extracted from QQ's statement of financial position at 31 March:
Included in other payables is interest payable of $80,000 at 31 March 20X2 and $73,000 at 31 March
20X1.
The following information if included within QQ's statement of profit or loss for the year ended 31 March 20X2.
Included within finance cost is $124,000 which relates to interest paid on a finance lease. QQ includes finance lease interest within financing activities on its statement of cash flows.
What cash outflow figure should be included as interest paid within the net cash flow from operating activities for QQ for the year ended 20X2?
Give your answer to the nearest $000.
Answer:
Explanation:
$493
NEW QUESTION # 112
The following information is extracted from the statement of financial position for ZZ at 31 March 20X3:
Included within cost of sales in the statement of profit or loss for the year ended 31 March 20X3 is $20 million relating to the loss on the sale of plant and equipment which had cost $100 million in June 20X1.
Depreciation is charged on all plant and equipment at 25% on a straight line basis with a full year's depreciation charged in the year of acquisition and none in the year of sale.
The revaluation reserve relates to the revaluation of ZZ's property.
The total depreciation charge for property, plant and equipment in ZZ's statement of profit of loss for the year ended 31 March 20X3 is $80 million.
The corporate income tax expense in ZZ's statement of profit or loss for year ended 31 March 20X3 is $28 million.
ZZ is preparing its statement of cash flows for the year ended 31 March 20X3.
What cash outflow figure should be included within cash flows from investing activities for the purchase of property, plant and equipment?
- A. $210 million
- B. $185 million
- C. $85 million
- D. $110 million
Answer: C
NEW QUESTION # 113
On 31 July 20X8, CDE's directors decided to sell an asset with a carrying amount of $26,000. On that date it ceased to be used in readiness for its sale.
There is an active second-hand market for this type of asset and it has been advertised at its market value of $24,000 When a seller is found, the asset will need to be dismantled at a cost of $1,000 What is the amount to be recognised as an asset held for sale on 31 July 20X8?
Give your answer to the nearest $.
Answer:
Explanation:
Pending
NEW QUESTION # 114
In 20X4, DEF closed its business having made a trading loss of $160,000. In DEF's country of residence, trading losses may be carried back three years on a LIFO basis.
The profits for the last four years of trading were:
What are the taxable profits or losses for years 20X1 and 20X2?
- A. 20X1 $143,000, 20X2 $ nil
- B. 20X1 $150,000, 20X2 $nil
- C. 20X1 $10,000, 20X2 $113,000
- D. 20X1 $150,000, 20X2 $133,000
Answer: A
NEW QUESTION # 115
Entity RH has an recognised a taxable profit of $1.Smillion for 20X1'. In Entity RH's resident country.
Country M, depreciation charges and entertaining expenses are disallowed expenses. Below is some information on Entitry RH's outgoings for the period:
Depreciation charged on PPE: $450,000
Political donations: $155,000
Staff parties: $3,200
Cost of updating assets: $10,000
Other expenses: $83,500
In Country M, there is a standard corporation tax of 12% charged on all corporation profits. What is Entity RH's total tax liability for this period?
- A. $254,184
- B. $234,384
- C. $252,984
- D. $125,616
Answer: B
NEW QUESTION # 116
The subsidiary company of Group XY has purchased £150,00 worth of goods its parent company.
However the goods purchased have yet to arrive at the subsidiary at the end of the financial year 20X4, meaning there is a disagreement in the current account balances between the parent and subsidiary.
With Group XY looking to produce its CSOFP for the end of the financial year, which of the following statements are true in relation to accounting for this disagreement? Select ALL that apply.
- A. As the goods have not reached the subsidiary by the end of the financial year 20X4, they will be included in the CSOFPfor the next financial year
- B. £150,000 will be debited to the payables account of the parent company
- C. £150,000 will be credited to the payables account of the subsidiary company
- D. The adjustments to resolve this disagreement, need to be accelerated, so they can be included in the consolidation of assets for the CSOFP for 20X4
- E. £150,000 worth of inventory will be debited into the subsidiary's inventory account
- F. £150,000 will be credited into the receivables account of the parent company
- G. £150,000 worth of inventory will be credited into the subsidiary's inventory account
Answer: D,E
NEW QUESTION # 117
Which of the following is NOT a type of supply for value added tax (VAT)?
- A. Standard-rated
- B. Exempt
- C. Zero-rated
- D. Fixed
Answer: D
NEW QUESTION # 118
Corporate governance is the means by which an entity is operated and
Answer:
Explanation:
NEW QUESTION # 119
The tax rules in a country state that all tax returns must be filed by 31 March each year and that any outstanding tax balance must be paid by 14 April each year. An entity filed its tax return on 10 April 20X2 and paid the outstanding tax on 20 April 20X2.
Which TWO of the following powers is the tax authority likely to have in respect of these actions by the entity?
- A. Charge interest for non-payment of the outstanding tax balance between 14 April 20X2 and 20 April
20X2. - B. Charge interest for non-payment of the outstanding tax balance between 31 March 20X2 and 20 April
20X2. - C. Charge interest for non-payment of the outstanding tax balance between 10 April 20X2 and 20 April
20X2. - D. Charge a fixed penalty for late submission of the tax return.
- E. Seize the assets of the entity.
Answer: A,D
NEW QUESTION # 120
Identify whether the scenarios below are examples of tax evasion or tax avoidance, by placing either tax evasion of tax avoidance against each one.
Answer:
Explanation:
NEW QUESTION # 121
Which of the following is an example of a progressive tax?
- A. Personal income tax of 10% and corporate income tax of 20%
- B. Corporate income tax of 20% on earnings up to $100,000, then at 10% over $100,000
- C. Corporate income tax of 20% on all earnings
- D. Personal income tax of 10% on earnings up to $10,000, then at 15% over $10,001
Answer: D
NEW QUESTION # 122
......
To be eligible for the CIMA F1 certification exam, candidates must have a basic understanding of accounting and financial principles. They must also have completed the CIMA Certificate in Business Accounting or hold an equivalent qualification.
New F1 Exam Questions| Real F1 Dumps: https://www.prep4sureguide.com/F1-prep4sure-exam-guide.html
Get New F1 Certification – Valid Exam Dumps Questions: https://drive.google.com/open?id=1o3MRMcDIaM9VoIZEuQ7SIBMeJNmjmX1Y