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CIMA Fundamentals of Financial Accounting Sample Questions:

1. The system of double entry book keeping relies upon accuracy of entries Which of the following combinations represent credit balances?

A) Property, plant & equipment, accruals, bank overdraft & discount received
B) Payables, accruals, share capital & loan stock(debentures)
C) Share premium, prepayments, payables & bad debts
D) Accruals, payables, drawings & discount allowed

2. Under the normal convention of accounting, assets are shown in the balance sheet at:

A) Their economic value to the firm
B) The current cost to the firm of replacing them
C) Their cost value
D) Their current market value

3. Which of the following are examples of indirect costs for a chocolate manufacturing business?

A) Purchase of cocoa
B) Factory supervisor wages
C) Factory rent
D) Factory insurance
E) Purchase of milk

4. The IASB's Framework for the Preparation and Presentation of Financial Statements identifies four possible measurement bases for use in financial statements Which of the following are those bases?

A) historical cost, current cost, realizable value, present value
B) historical cost, modified historical cost, realizable value, present value
C) historical cost, modified historical cost, realizable value, current cost
D) historical cost, resale value, realizable value , present value

5. Refer to the Exhibit.

A business banks its takings for the week. The bank account at the start of the week shows an overdraft Which of the following is the dual effect?

A) A
B) B
C) C
D) D

Solutions: