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CIMA F1 real answers - Financial Reporting

F1
  • Exam Code: F1
  • Exam Name: Financial Reporting
  • Updated: Oct 14, 2025
  • Q & A: 247 Questions and Answers
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CIMA Financial Reporting Sample Questions:

1. Which of the following is not a possible tax rate structure?

A) Progressive
B) Direct
C) Proportional
D) Regressive


2. AA manufactures computers. These are sold to BB at $100 a computer plus a 5% sales tax. BB subsequently sells the computers to CC for $200 a computer plus a 5% sales tax. C sells the computers to customers at $300 a computer plus a 5% sales tax.
The total tax received by the tax authority is $30.
Which type of tax is described above?

A) Value added tax
B) Retail tax
C) Single-stage sales tax
D) Multi-stage cumulative sales tax


3.


4. Which of the following is correct?
The primary purpose of a cash budget prepared on a monthly basis is to determine:

A) whether there will be sufficient cash in the bank to meet requirements.
B) next month's sales volumes.
C) when to pay employees salaries.
D) the amount of inventory to purchase in the following month.


5. An entity bought a capital item for $110,000 on 1 March 20X4 incurring legal fees at the date of purchase of
$2,500.
On 1 May 20X4 additional costs classified as capital expenditure by the tax rules of the country of $25,000 were incurred in respect of the asset. On 1 June 20X4 repairs not classified as capital expenditure were incurred at a cost of $15,000.
The asset was sold for $250,000 on 30 November 20X8 and costs to sell were incurred of $4,300.
Calculate the chargeable gain on the disposal.
Give your answer to the nearest $.


Solutions:

Question # 1
Answer: B
Question # 2
Answer: D
Question # 3
Answer: Only visible for members
Question # 4
Answer: A
Question # 5
Answer: Only visible for members

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