Question 1

The following information is extracted from OO's statement of financial position at 31 March:

Included in other payables is interest payable of $80,000 at 31 March 20X2 and $73,000 at 31 March
20X1.
The following information if included within OO's statement of profit or loss for the year ended 31
March 20X2:

Included within finance cost is $124,000 which relates to interest paid on a finance lease. 00 includes
finance lease interest within financing activities on its statement of cash flows.________________
Within OO's statement of cash flow for the year ended 31 March 20X2 which figures should be
included to reflect the changes in working capital within the net cash flow from operating activities?

• A. Option A
• B. Option B
• C. Option C
• D. Option D

Question 2

HOTSPOT

Question 3

DRAG DROP


Answer

Question 4

DRAG DROP

Answer

Question 5

HOTSPOT

Question 6

DRAG DROP
Identify whether the scenarios below are examples of tax evasion or tax avoidance, by placing either
tax evasion of tax avoidance against each one.

Question 7

DRAG DROP
The Conceptual Framework for Financial Reporting issued by the International Accounting Standards
Board (known as the IASB's conceptual framework) includes one underlying assumption about the
preparation of financial statements and two fundamental qualitative characteristics for financial
information.
Identify the underlying assumption and one of the fundamental characteristics by placing one of the
options in each of the boxes below.

Question 8

DRAG DROP
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.

Answer

Question 9

DRAG DROP
Indicate the possible reasons for the changes identified below to working capital ratios by placing the
appropriate reason against each change.

Question 10

DRAG DROP
An entity's inventory days are 45 days.
An entity ceased to manufacture a product in 20X4. Raw materials used solely in the manufacture of
that product are still held in inventory at 31 December 20X4.
Place the appropriate response below to show how inventory days will be affected if this raw
material inventory is written off as obsolete.

Question 11

DRAG DROP
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.

Question 12

DRAG DROP
EF is a large manufacturing entity with several of its manufacturing sites in different locations.
Currently all of the sites have a local procurement department. EF's board are looking to implement
a centralized purchasing system.
Match the tokens according to whether you believe each statement is either an advantage or
disadvantage of implementing a centralized purchasing system for EF.

Question 13

DRAG DROP
There are two main approaches that a country could adopt in respect of corporate governance
regulation - a rules based approach and a principles based approach. Match the following statements
with the appropriate approach by placing either rules based or principles based against each of
them.

Answer

Question 14

DRAG DROP
You work in the finance department of an entity. A director has approached you and asked you to
falsify sales invoices which would significantly inflate revenue. The CIMA Code of Ethics suggests that
you should deal with such an ethical dilemma by following a number of stages.
Place each of the stages identified below into chronological order.

Question 15

The following information relates to AA.
Extract of Trial Balance at 31 December 20X4;

Notes
(i) Inventory at 31 December 20X4 was valued at cost at $30.
(ii) The loan which was received on 1 July 20X4 is repayable in 20X9.
(iii) Corporate income tax represents an over-provision of tax for the year ended 31 December 20X3.
AA reported a loss for tax purposes for the year ended 31 December 20X4 and a tax refund is
expected amounting to $20.
(iv) Cost of sales, administration and distribution costs need to be adjusted for the following:
What figures should be entered on the face of the Statement of profit or Loss for the year ended 31
December 20X4 in relation to Interest and Corporate income tax?

• A. Interest $25 Corporate income tax $(37)
• B. Interest $25 Corporate income tax $37
• C. Interest $50 Corporate income tax $(3)
• D. Interest $50 Corporate income tax $3