CIMA Financial Reporting - F1 Exam Practice Test

Which of the following would be capitalized as an intangible asset in accordance with IAS 38 Intangible Assets?

Correct Answer: C
Which of the following would NOT be classified as part of non-current assets in a statement of financial position?

Correct Answer: B
Which of the following would NOT be a risk or impact of overtrading?

Correct Answer: D
The following data relates to Company AB.
Statement of Profit or Loss for the year ended 30 June 20X4:

During the year ending 30 June 20X4, which was not a leap year, the average stock holding period was
102 days.
Calculate the working capital cycle in days.
Give your answer to the nearest full day.
Correct Answer:
56 days
An asset has the following values:

If the asset was sold for its fair value, selling costs of $1,500 would be incurred.
Which of the following is the value of the impairment loss to be recognised for this asset in accordance with IAS 36 Impairment of Assets?

Correct Answer: B
Which of the following is a condition that has to be met for an entity to be exempt the requirement to prepare consolidated financial statements?

Correct Answer: A
What is the correct classification of a 90-day government bond?
Correct Answer:
XY acquired 75% of the equity shares of CD on 1 January 20X2 for $230,000.
On 1 January 20X2 CD had the following balances:

XY uses the proportionate share of net assets method to value non controlling interest at acquisition.
Calculate the goodwill arising on the acquisition of CD.
Give your answer to nearest whole number.
Correct Answer:
$5000
An entity bought a capital item for $110,000 on 1 March 20X4 incurring legal fees at the date of purchase of $2,500.
On 1 May 20X4 additional costs classified as capital expenditure by the tax rules of the country of
$25,000 were incurred in respect of the asset. On 1 June 20X4 repairs not classified as capital expenditure were incurred at a cost of $15,000.
The asset was sold for $250,000 on 30 November 20X8 and costs to sell were incurred of $4,300.
Calculate the chargeable gain on the disposal.
Give your answer to the nearest $.
Correct Answer:
$108200
When developing local Generally Accepted Accounting Principles (known as local GAAP) some countries start with International Financial Reporting Standards (IFRSs) which are then amended to reflect local needs and conditions.
This type of approach is classified as:

Correct Answer: B

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