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CIMA Financial Reporting Sample Questions:

1. Mr K is being pressured by his manager to change figures in his report so that it will improve his manager's bonus.
His manager has promised Mr K a promotion if he agrees to do this.
What threats is Mr K facing?

A) Intimidation and familiarity
B) Intimidation and self-interest
C) Self-review and advocacy
D) Familiarity and self-interest

2. Which THREE of the following are conditions that must be met to allow an asset to be categorised as held for sale?

A) Management is committed to a plan to sell
B) A buyer has already expressed interest
C) The asset is available for immediate sale
D) The sale of the asset is likely to generate a significant profit
E) The asset is being actively marketed at a reasonable price

3. Which THREE of the following statements are NOT true of the IFRS Foundation trustees?

A) Are involved in the technical matters relating to accounting standards
B) Are mainly from Europe and the USA
C) Responsible for appointing members of the IA5B
D) Receive funding by donations from the general public
E) Responsible of appointing members of the IFRS interpretations committee

4. Why are excise duties an attractive method of raising tax for governments?
Select TWO that apply.

A) High yields from the tax.
B) Low cost of collection compared to other forms of taxation.
C) Popular form of tax for the tax payer as it can be reclaimed.
D) Ensures that the tax levied on all taxpayers is the same irrespective of their spending habits.
E) Encourages consumption of products such as alcohol.

5. The United Kingdom (UK) uses a principle based approach to corporate governance which means:

Solutions: