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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Which THREE of the following items would be classified as "capital transactions"?

A) Electricity consumed in the period
B) Purchase of a small commercial vehicle
C) Purchase of raw materials
D) Repayment of bank loan
E) Drawings
F) Sales on credit to customers

2. If a profitable entity is not required to register for sales tax with its local tax authority, which of the following statements is TRUE?

A) Sales tax will not be added to the cost of goods and expenses supplied
B) Sales tax will not be added to the sales price of goods invoiced to customers
C) Profit for the year will be reported net of sales tax.
D) A sales tax receivable account will be prepared in the nominal ledger

3. Which of the following best explains what is meant by "capital expenditure"?

A) Expenditure on the improvement and maintenance of non-current assets
B) Expenditure on the acquisition of non-current assets
C) Expenditure incurred in the raising of capital
D) Depreciation charges on non-current assets

4. HJK has maintained minimal accounting records during the year but has the following information available:

HJK charges a mark-up on all goods sold of 25%. What is HJK's gross profit for the year?

A) $57,500
B) $77,500
C) $62,000
D) $46,000

5. Refer to the Exhibit.

Your organization uses the Weighted Average Cost method of valuing inventory.
During a particular month, the following inventory details were recorded:
The value of the inventory at the end of the month was

Solutions: