CIMA F1 Past Paper Questions and Answers

Below are a number of past paper questions and answers from the 2010 Syllabus that are still relevant to the CIMA F1 exam. Whilst the same question styles may no longer be available under the CIMA 2015 syllabus they are still very useful in testing your understanding.

Section A: Regulatory Environment for Financial Reporting and Corporate Governance (10% of syllabus)

Learning outcomes:

A1(a) Explain the need for the regulation of the financial reporting information of incorporated entities and the key elements of an ethical regulatory environment for such information

*No relevant questions*

A1 (b) Explain the roles and structures of the key bodies involved in the regulationof financial reporting information

A1(c) Explain the scope of IFRS and how they are developed

A1 (d) Describe the role of the external auditor in the context of the financial reporting information of incorporated entities and the content and significance of the audit report.

A2 (a) Discuss the need for and scope of corporate governance regulation

*No relevant questions*

A2 (b) Compare and contrast the approach to corporate governance in different markets.

*No relevant questions*


 Section B: Financial Accounting and Reporting (45% of syllabus)

Learning outcomes:

B1 (a) Describe the main elements of financial statements prepared in accordance with IFRS

B1 (b) Explain the key principles contained within the IASB‘s Conceptual Framework for Financial Reporting

*No relevant questions*

B2 (a) Produce the primary financial statements from trial balance for an individual entity in accordance with IFRS

B2 (b) Apply the rules contained in IFRS to generate appropriate accounting entries in respect of reporting performance, accounting for taxation, employee benefits, non-current assets, accounting for government grants, impairment, inventories and events after the reporting period

B2 (c) Discuss the ethical selection and adoption of relevant accounting policies and accounting estimates

*No relevant questions*

B3 (a) Explain whether an investment in another entity constitutes a subsidiary or an associate relationship in accordance with relevant international financial reporting standards

B3 (b) Explain situations where a parent entity is exempt from preparing consolidated financial statements

*No relevant questions*

B3 (c) Produce the consolidated statement of financial position and statement of comprehensive income in accordance with relevant IFRS for a group comprising of one or more subsidiaries (being either wholly or partially directly owned) or associates, including interests acquired part way through an accounting period


Section C: Management of Working Capital, Cash and Sources of Short-Term Finance (20% of syllabus)

Learning outcomes:

C1 (a) Describe the sources of short-term finance and methods of short-term cash investment available to an entity

C2 (a) Analyse trade receivables, trade payables and inventory ratios

C2 (b) Discuss policies for the management of the total level of investment in working capital and for the individual elements of working capital

C2 (c) Evaluate working capital policies

C2 (d) Discuss approaches to the financing of working capital investment levels

C3 (a) Discuss measures to manage the short-term cash position of an entity.


Section D: Fundamentals of Business Taxation (25% of syllabus)

Learning outcomes:

D1 (a) Discuss the features of the types of indirect and direct taxation that typically apply to an incorporated entity

D1 (b) Discuss the regulatory environment for taxation, including the distinction between tax evasion and tax avoidance

D2 (a) Explain the taxation issues that may apply to an incorporated entity that operates internationally

D3 (a) Produce corporate income tax computations from a given set of rules

D3 (b) Produce capital tax computations from a given set of rules.

*No relevant questions*