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CIMA Fundamentals of Financial Accounting Sample Questions:

1. The accounting concept to be considered when the owner of a business uses business funds to pay for his private household expenses, is the:

A) Realization concept
B) Separate entity concept
C) Money measurement concept
D) Prudence concept

2. Which THREE of the following are subsidiary bodies of the IFRS Foundation?

A) IFRS Advisory Council
B) International Advisory Standards Board
C) IFRS Interpretations Committee
D) International Accounting Standards Board
E) Advisory Interpretations Committee
F) International Advisory Committee

3. The valuation of inventory in a manufacturing company will consist of:

A) Direct material and direct labor only
B) Direct material, direct labor and direct expenses only
C) All direct costs plus a share of production overheads
D) All direct costs plus a share of production and non-production overheads

4. Which of the following would be a role of the management accountant?

A) Reporting historic transactions
B) Monitoring actual results to expected results
C) Meeting external reporting requirements
D) Producing financial statements

5. "To assure shareholders that the stewardship of the organization was effectively carried out." What does this definition describe?

A) Preparation of financial statements
B) External audit
C) Internal audit
D) Reconciliation process

Solutions: