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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Which one of the following statements is true?

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

2. What is the balance of the trading account?

A) The closing inventories total
B) The gross profit
C) The revenue value
D) The total income

3. Non-current assets can be divided between intangible and tangible assets.
Which THREE of the following are intangible assets?

A) Goodwill
B) Research and development
C) Plant
D) Buildings
E) Patent
F) Land

4. Refer to the exhibit.

A company has the following equity balances at the beginning of the year:
During the year the company issued 100,000 new shares at $1.20 each

What are the equity balances after this issue?

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

5. At the beginning of the year, a club's Membership Subscriptions account showed a debit balance of $500 and a credit balance of $225. During the following year, subscriptions received amounted to $12000.
At the end of the year, subscriptions paid in advance amounted to $200, and subscriptions in arrears, and expected to be collected, amounted to $150.
The amount to be transferred to the income and expenditure account for the year is

Solutions: