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CIMA Fundamentals of Financial Accounting Sample Questions:
1. Which ONE of the following does the Statement of Cash Flows show:
A) The assets, equity and liabilities of a business
B) Notes to go with the statements that explain the practices used
C) The cash usage of a business over a period of time
D) The revenue and expenses of a business over a period of time
2. Company P are looking to create a balance sheet. Which of the following should be included in this document?
A) Company P's current assets
B) Company P's investing activities
C) Company P's revenue for the period
D) Company P's liabilities
E) Company P's cash usage for the period
3. A decrease in the allowances for receivables would result in:
A) An increase in working capital
B) A decrease in net profit
C) An increase in liabilities
D) A decrease in working capital
4. Accounting standards and company law both influence how assets and liabilities ate classified and presented in financial statements An amount owing at the year end, due for repayment more from one year from the date that the statement of financial position is being prepared, will be classified under which of the following headings?
A) Capital
B) Non-current liability
C) Current liability
D) Non-current asset
5. A liability may best be defined as:
A) A resource which may be used to derive income in the future
B) The amount of money withdrawn from the business by the owners
C) A person or entity owing money to the business
D) An obligation to transfer economic benefits as a result of past transactions or events
Solutions:
Question # 1 Answer: C | Question # 2 Answer: A,D | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: D |
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