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CIMA Financial Reporting Sample Questions:

1. Which THREE of the following are principles identified by the Code of Ethics?

A) Professional competence and expertise
B) Understandability
C) Neutral
D) Professional behavior
E) Confidentiality
F) Professional competence and due care

2. Entity RH has an recognised a taxable profit of $1.Smillion for 20X1'. In Entity RH's resident country.
Country M, depreciation charges and entertaining expenses are disallowed expenses. Below is some information on Entitry RH's outgoings for the period:
Depreciation charged on PPE: $450,000
Political donations: $155,000
Staff parties: $3,200
Cost of updating assets: $10,000
Other expenses: $83,500
In Country M, there is a standard corporation tax of 12% charged on all corporation profits. What is Entity RH's total tax liability for this period?

A) $254,184
B) $252,984
C) $234,384
D) $125,616

3. Identify from the list below which items can be recognised as assets within the financial statements of an entity in accordance with IAS 38 Intangible Assets. Place either yes or no as appropriate against each item.

4. Which of the following is NOT a type of supply for value added tax (VAT)?

A) Zero-rated
B) Exempt
C) Standard-rated
D) Fixed

5. Identify which of the following are powers that a government would typically grant it's tax authority by placing the appropriate response beside each power.

Solutions: