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CIMA Fundamentals of Financial Accounting Sample Questions:

1. The balances of the trial balance of CDE for the year ended 31 May 20X4 is as follows

What must the balance on the share capital account be at 31 May 20X4 if the trial balance is to balance? Give your answer in $'000

2. Refer to the Exhibit.

A company which is not VAT-registered received an invoice for vehicle repairs of $650 excluding VAT. The rate of VAT on the invoice was 17.5%.
Which of the following ledger entries to record the invoice are correct?
The correct ledger entries are.

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

3. UVW is preparing its manufacturing account for the year ended 30 June 20X7 The following information is available:

What is UVWs prime cost for year ended 30 June 20X7?

A) $397,000
B) $344,000
C) $352,000
D) $389,000

4. Accounting standards are needed so that financial statements will fairly and consistently describe financial performance.
What are accounting standards an example of?

A) Cost accounting
B) Cash accounting
C) Rules based accounting
D) Principles based accounting

5. The accumulated fund is equal to:

A) The excess of receipts over payments in a not-for-profit organization
B) Retained profits in a limited company
C) The bank balances of an organization
D) The book value of net assets in a not-for-profit organization

Solutions: