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CIMA Fundamentals of Financial Accounting Sample Questions:

1. An invoice for electricity has been debited to the supplier's account and credited to the electricity account. This would result in:

A) An overstatement of profit and an understatement of current liabilities
B) An understatement of profit and an understatement of current liabilities
C) An overstatement of profit and an overstatement of current liabilities
D) An understatement of profit and an overstatement of current liabilities

2. Which THREE of the following would be shown in the statement of changes in equity?

A) Dividends received
B) Share issues
C) Taxation for the year
D) Dividends paid
E) Profit for the year
F) Loan stock(debenture) issues

3. Which one of the following will not be found in a statement of changes in equity?

A) Share premium account
B) General reserve
C) Ordinary shares
D) Debentures

4. The record of how the profit or loss of a company has been allocated to distributions and reserves is found in the:

A) Reserves account
B) Capital account
C) Appropriation account
D) Retained profit account

5. External auditors report their findings to:

A) Internal auditors
B) Creditors
C) Directors
D) Shareholders of the company

Solutions: