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CIMA CIMA Certification F1

F1

Exam Code: F1

Exam Name: Financial Reporting

Updated: Nov 02, 2026

Q & A: 247 Questions and Answers

F1 Free Demo download:

PDF Version Demo Test Engine Online Test Engine

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CIMA F1 Exam Syllabus Topics:

SectionObjectives
Financial Statement Analysis- Performance analysis
  • 1. Ratio analysis
    • 2. Trend analysis
      - Interpretation of financial information
      • 1. Assessment of profitability and liquidity
        • 2. Limitations of financial statements
          Accounting Standards Application- Basic application of IFRS standards
          • 1. Revenue recognition principles
            • 2. Inventory valuation methods
              Financial Reporting Fundamentals- Regulatory Framework
              • 1. International Financial Reporting Standards (IFRS) principles
                • 2. Conceptual framework for financial reporting
                  - Financial Statements Preparation
                  • 1. Statement of cash flows basics
                    • 2. Statement of financial position
                      • 3. Statement of profit or loss and other comprehensive income

                        CIMA Financial Reporting Sample Questions:

                        Question #1
                        Which of the following is NOT an appropriate description of the meaning of the term incidence of tax?

                        A. It refers to the distribution of the tax burden.
                        B. It only relates to the person or entity that actually pays the tax authorities.
                        C. It relates to the person or entity that ultimately bears the cost of the tax.
                        D. It can be formal or actual.


                        Question #2
                        Which of the following is the main purpose of corporate governance regulation?

                        A. To ensure that shareholder wealth is maximized.
                        B. To protect the interests of shareholders in a quoted entity.
                        C. To guarantee that corporate scandals do not happen in the future.
                        D. To ensure that financial reports are produced on a regular basis and in line with relevant regulations.


                        Question #3
                        The legislation in Country S provides for an indexation allowance in the calculation of capital tax. STU operates in Country S where the indexation factor for the period 1 January 20X1 to 31 December 20X6 is 20% STU purchased a building for $64,000 on 1 January 20X1, incurring legal fees of $4,000. STU sold the building for $86,000 on 31 December 20X6 before selling fees of $3,500 What is the chargeable capital gam arising on STU's disposal of the building?

                        A. S900
                        B. $5,700
                        C. S11,600
                        D. $200


                        Question #4
                        An asset cost $250,000 on 1 January 20X1 and on that date was assessed to have a residual value of $40,000 and a useful economic life of six years. On 1 January 20X4 management assessed that the remaining useful economic life of the asset was five years and that the asset had a residual value of nil.
                        What is the depreciation charge for this asset in the year ended 31 December 20X4?
                        Give your answer to the nearest whole number.


                        Question #5
                        Company RET's financing activities are exactly 35% of their operating activities expenses each month. Below is a list of Company RET's total expenses for this month:
                        Inventory supplies purchased: £145,000
                        Employee wages: £65,000
                        Purchase of a shop: £105,000
                        Dividend payments: ??
                        Cash repayments on loan: £61,000
                        What is company RET's total dividends payment for this month?

                        A. £12,500
                        B. £131,600
                        C. £26,500
                        D. £49,250


                        Solutions:

                        Question #1
                        Correct Answer: B
                        Question #2
                        Correct Answer: B
                        Question #3
                        Correct Answer: A
                        Question #4
                        Correct Answer: Only visible for members
                        Question #5
                        Correct Answer: A

                        F1 Related Exams
                        CIMAPRO15-P01-X1-ENG - P1 - Management Accounting Question Tutorial
                        CIMAPRO17-BA2-X1-ENG - BA2 – Fundamentals of Management Accounting Question Tutorial
                        CIMAPRA19-E02-1 - CIMA E2 Managing Performance Exam
                        E1 - Managing Finance in a Digital World
                        CIMAPRO15-E03-X1-ENG - E3 - Strategic Management Question Tutorial
                        F1 - Financial Reporting
                        Related Certifications
                        CIMA Management
                        CIMA Certificate
                        CIMA Strategic level
                        CIMA Certification
                        CIMA Strategic Level Case Study Exam
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