CIMA F1 Exam Questions : Financial Reporting

  • Exam Code: F1
  • Exam Name: Financial Reporting
  • Updated: Sep 16, 2026
  • Q&As: 247 Questions and Answers

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CIMA F1 Exam Syllabus Topics:

SectionWeightObjectives
Financial Statements45%- Statement preparation and IFRS application
  • 1. Prepare statement of profit or loss and other comprehensive income
  • 2. Prepare statement of financial position
  • 3. Statement of changes in equity and cash flows
Managing Cash and Working Capital25%- Cash and working capital management
  • 1. Working capital cycle and liquidity ratios
  • 2. Receivables, payables and inventory management
Principles of Taxation20%- Taxation fundamentals
  • 1. Tax implications and issues affecting taxation
  • 2. Types of tax and direct tax principles
Regulatory Environment of Financial Reporting10%- Regulators and their role
  • 1. Corporate governance and ethical framework
  • 2. Role of IASB and IFRS Foundation

CIMA Financial Reporting Sample Questions:

Question #1

LM is preparing its cash forecast for the next three months.
Which of the following items should be left out of its calculations?

  • A. Receipt of a new bank loan raised for the purpose of purchasing new machinery.
  • B. Tax payment due, that relates to last year's profits.
  • C. Expected loss on the disposal of a piece of land.
  • D. Rental payment on a leased vehicle.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #2

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

Reveal Solution  Discussion  0

Correct Answer:


Question #3

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 can be formal or actual.
  • C. It relates to the person or entity that ultimately bears the cost of the tax.
  • D. It only relates to the person or entity that actually pays the tax authorities.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #4

What does the exemption method of giving double taxation relief mean?

  • A. The countries agree that all types of income will be exempt or partially exempt in one country or the other.
  • B. The countries agree on certain types of income which will be exempt or partially exempt in both countries.
  • C. The countries agree that all types of income will be exempt or partially exempt in both countries.
  • D. The countries agree on certain types of income which will be exempt or partially exempt in one country or the other.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #5

For an entity to be exempt from preparing consolidated financial statements it must meet certain criteria specified in IFRS 10 Consolidated Financial Statements.
Which of the following conditions would give exemption from preparing consolidated financial statements?

  • A. The parent is in the process of issuing securities in a public securities market.
  • B. The parent's securities are publicly traded.
  • C. The parent is a wholly owned subsidiary of another entity.
  • D. All of the parent's subsidiaries are in one country.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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