CIMA CIMAPRA19-F01-1 Exam Practice Test Instant Access

Question 1

The following information is extracted from OO's statement of financial position at 31 March:

Included in other payables is interest payable of $80,000 at 31 March 20X2 and $73,000 at 31 March 20X1.

The following information if included within OO's statement of profit or loss for the year ended 31 March 20X2:

Included within finance cost is $124,000 which relates to interest paid on a finance lease. 00 includes finance lease interest within financing activities on its statement of cash flows.________________

Within OO's statement of cash flow for the year ended 31 March 20X2 which figures should be included to reflect the changes in working capital within the net cash flow from operating activities?

AOption A

BOption B

COption C

DOption D

Answer : C

Question 2

Which of the following would be found under the heading "other comprehensive income" in the statement of total comprehensive income?

AGain or loss on revaluation of a non-current asset

BIncome from investments

CDividends paid

DIncrease or decrease in provision for irrecoverable debts

Answer : A

Question 3

Which of the following is NOT a primary need for regulating financial reporting information of incorporated entities?

ATo improve the reliability of information for users.

BTo make information more consistent.

CTo make information more comparable.

DTo ensure that information is consistent with its legal form.

Answer : D

Question 4

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?

AThe parent's securities are publicly traded.

BThe parent is in the process of issuing securities in a public securities market.

CThe parent is a wholly owned subsidiary of another entity.

DAll of the parent's subsidiaries are in one country.

Answer : C

Question 5

If a parent entity is to be exempt from preparing consolidated financial statements it needs to satisfy certain conditions according to IFRS 10 Consolidated Financial Statements.

Which TWO of the following are conditions that need to be satisfied to be exempt?

AThe parent entity is itself a wholly owned subsidiary of another entity.

BThe ultimate parent of the parent entity publishes consolidated financial statements which are publicly available.

CThe parent 's investment in its subsidiaries are all below 100%.

DThe parent entity has no more than 10 subsidiaries or associated entities.

EThe parent entity has subsidiaries, one or more of which publishes consolidated financial statements.

Answer : A, B

Question 6

The tax rules in a country state that all tax returns must be filed by 31 March each year and that any outstanding tax balance must be paid by 14 April each year. An entity filed its tax return on 10 April 20X2 and paid the outstanding tax on 20 April 20X2.

Which TWO of the following powers is the tax authority likely to have in respect of these actions by the entity?

ACharge a fixed penalty for late submission of the tax return.

BCharge interest for non-payment of the outstanding tax balance between 14 April 20X2 and 20 April 20X2.

CCharge interest for non-payment of the outstanding tax balance between 31 March 20X2 and 20 April 20X2.

DCharge interest for non-payment of the outstanding tax balance between 10 April 20X2 and 20 April 20X2.

ESeize the assets of the entity.

Answer : A, B

Question 7

When developing local Generally Accepted Accounting Principles (known as local GAAP) some countries start with International Financial Reporting Standards (IFRSs) which are then amended to reflect local needs and conditions.

This type of approach is classified as:

AAdoption of IFRSs as local GAAP.

BUsing IFRSs as a model for local GAAP.

CIFRSs having a persuasive influence in formulating local GAAP.

DIFRSs having little or no impact in formulating local GAAP.

Answer : B

CIMAPRA19-F01-1 F1 Financial Reporting Exam Practice Test