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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Refer to the Exhibit.

A business banks its takings for the week. The bank account at the start of the week shows an overdraft Which of the following is the dual effect?

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

2. In a cash flow statement, which one of the following would not be found under the section "cash flows from financing activities"?

A) Proceeds from issuing shares
B) Dividend received
C) Dividend payments
D) Loan repayments

3. The main aim of financial accounting is to:

A) Provide financial information to satisfy the needs of users of accounts
B) Maintain ledger accounts for every asset and liability
C) Record every financial transaction in the books of account
D) Ensure that double-entry records are maintained

4. Which one of the following best describes the stewardship function?

A) Managing cash
B) Maximizing profits
C) Ensuring the recording, controlling and safeguarding of assets
D) Carrying out an external audit

5. Which one of the following internal controls is designed to prevent errors and fraud?

A) External audit.
B) Bank reconciliations.
C) Requiring cheques over a certain amount to be signed by two signatories.
D) Confirmation of payables balances with suppliers.

Solutions: