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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Refer to the Exhibit.

Which of the following are books of prime entry?

A) (i), (ii), (iv) and (vi)
B) (ii), (iii) and (iv)
C) (ii), (v) and (vi)
D) (i), (ii), (iv) and (v)

2. MNO operates an imprest system to maintain a float of petty cash of 5100 At the end of the week the petty cash expense vouchers total $76 and there is $36 cash in the float. Which of the following, taken independently, would explain this difference of $10?

A) $10 expense has been paid for which there is a missing expense voucher
B) The total of the expense vouchers has been overstated by $10
C) A $10 receipt from an employee has not been added to the float
D) A $20 bill has been counted as a $10 bill in the float

3. What is the balance of the trading account?

A) The closing inventories total
B) The gross profit
C) The revenue value
D) The total income

4. Which of the following is an error of principle?

A) A transaction recorded twice in the ledger accounts
B) Using the wrong amount when recording a transaction
C) Recording a transaction in the wrong type of account
D) Recording a transaction in the wrong ledger account

5. The role of the internal auditors is primarily to:

A) Report to shareholders on the accuracy of the accounting system
B) Reduce the fees charged by the external auditors by carrying out some of their duties at a lower cost, thereby improving profits
C) Support the work of the external auditors by carrying out specific checks on the accuracy of the accounting system
D) Prepare the financial accounts

Solutions: