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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Which one of the following statements is true?

A) External auditors are employed by the management
B) External auditors are employed by the stakeholders
C) Internal auditors are employed by the stakeholders
D) Internal auditors are employed by the management

2. The profit earned by Subramanian in 2006 was £ 50,000. He injected new capital of £12,000 during the year and withdrew goods for his private use that cost £4,000.
If net assets at the beginning of 2006 were £10,000, what were the closing net assets?

3. Which ONE of the following organizations issues International Accounting Standards (IFRS's)?

A) International Financial Reporting Interpretation Committee (IFRIC)
B) Standards Advisory Council (SAC)
C) International Accounting Standards Board (IASB)
D) International Accounting Standards Committee Foundation (IASCF)

4. Which TWO of the following statements are correct?

A) Preference shares are the lowest priority when winding up
B) Preference shares carry voting rights
C) Ordinary shares carry voting rights
D) Ordinary shares carry compulsory dividends
E) Preference shares usually carry a fixed dividend

5. Which THREE of the following are characteristics of management accounting?

A) Monitors actual results to expected results
B) Is forward looking
C) Used by tax authorities
D) Reports historic transactions
E) Meets external reporting requirements
F) Focuses on departmental information

Solutions: