CIMA Financial Reporting : F1 Exam Questions

  • Exam Code: F1
  • Exam Name: Financial Reporting
  • Updated: Jul 26, 2026
  • Q&As: 247 Questions and Answers

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CIMA F1 Exam Syllabus Topics:

SectionWeightObjectives
Principles of Taxation20%- Taxation fundamentals
  • 1. Types of tax and direct tax principles
  • 2. Tax implications and issues affecting taxation
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
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:

1. Which TWO of the following are implications of employee income tax being paid to the tax authority through a Pay-As-You-Earn scheme?

A) The tax authority deals directly with the employees rather than the employers.
B) The government can budget its cash flows more easily.
C) The risk of employees defaulting on the payment of tax due is reduced
D) Most of the administrative costs of collecting the tax are borne by the tax authority
E) The tax is paid after the employee completes a tax return.


2. The following information is extracted from the trial balance of YY at 30 September 20X3.

i. Included in revenue is a refundable deposit of $20 million for a sales transaction that is due to take place on 14 October 20X3.
ii. The cost of closing inventory is $28 million, however, the net realisable value is estimated at $25 million.
iii. The interest free loan was obtained on 1 January 20X3. The loan is repayable in 12 quarterly installments starting on 31 March 20X3. All installments to date have been paid on time.
Calculate the cost of sales that would be shown in YY's statement of profit or loss for the year ended 30 September 20X3.
Give your answer to the nearest $ million.


3. What is the correct classification of a 90-day government bond?


4.


5. An entity has an inventory holding period of 52 days.
This means that the inventory:

A) takes 52 days to manufacture.
B) takes 52 days to be paid for.
C) stays in the entity's warehouse for an average of 52 days before it is sold.
D) takes 52 days to arrive after it has been ordered.


Solutions:

Question # 1
Answer: B,C
Question # 2
Answer: Only visible for members
Question # 3
Answer: Only visible for members
Question # 4
Answer: Only visible for members
Question # 5
Answer: C

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