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CIMA F1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Financial Statements | 45% | - Preparation of single entity financial statements
- Interpretation and analysis of financial statements |
| Topic 2: Managing Cash and Working Capital | 25% | - Cash management and forecasting - Working capital cycle and objectives - Management of receivables, inventory and payables - Short-term financing options |
| Topic 3: Principles of Taxation | 20% | - Current tax calculation - Indirect taxes overview - Tax system and types of taxes - Deferred tax concepts |
| Topic 4: The Regulatory Environment of Financial Reporting | 10% | - Ethics in financial reporting - Principles vs rules-based regulation - Conceptual framework and regulatory bodies - IFRS Foundation and IASB structure |
CIMA Financial Reporting Sample Questions:
For an entity to be exempt from preparing consolidated financial statements it must meet certain criteria specified in IFRS 10 Consolidated Financial Statements.
Which of the following conditions would give exemption from preparing consolidated financial statements?
- A. All of the parent's subsidiaries are in one country.
- B. The parent's securities are publicly traded.
- C. The parent is a wholly owned subsidiary of another entity.
- D. The parent is in the process of issuing securities in a public securities market.
Correct Answer: C 🗳️
Which of the following would NOT normally be subject to a withholding tax?
- A. Profit for the year
- B. Royalties paid
- C. Interest on fixed term loans
- D. Equity dividends paid
Correct Answer: A 🗳️
An entity's policy is to finance the investment in working capital using short-term financing to fund all of its investment in fluctuating net current assets as well as some of its investment in permanent net current assets.
What is this working capital financing policy known as?
- A. Moderate
- B. Short term
- C. Aggressive
- D. Conservative
Correct Answer: C 🗳️
Which of the following are techniques that can be used by a company to ensure they receive timely payment of receivables? Select ALL that apply:
- A. Offering cash or early payment discount
- B. Assessing credit risk of customers before they are given credit
- C. Offering extended credit to return customers
- D. Charging interest on late payments
- E. Offering free items
Correct Answer: A,B,D 🗳️
BBB has been experiencing liquidity problems and currently has an overdraft with the bank.
Which THREE of the following would be appropriate measures to help address this problem?
- A. Invest in a short term deposit with the bank.
- B. Offer early settlement discounts to encourage debtors to pay more quickly.
- C. Sell some surplus fixed assets.
- D. Reduce the selling price of goods to reduce the holding of stock.
- E. Shorten the time taken to pay creditors.
- F. Pay a dividend to shareholders.
Correct Answer: B,C,D 🗳️
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