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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Non-current assets can be divided between intangible and tangible assets.
Which THREE of the following are intangible assets?

A) Plant
B) Research and development
C) Goodwill
D) Land
E) Buildings
F) Patent

2. Which of the following transactions would be classified as a revenue transaction?

A) Purchase of inventory for resale
B) Issue of share capital
C) Payments made to trade payables
D) Purchase of plant and machinery

3. Refer to the exhibit.

A company has the following equity balances at the beginning of the year During the year the company made a rights issue of 1 for 5 at a price of $1.50 The balance of share premium after this issue is

4. Accountant P debited wages with £1,000 instead of £1,500, but credited sales with £1,500 instead of £2,000.
Which of the following kind of bookkeeping mistakes is this?

A) Reversal of entries
B) Error of original entry
C) Compensation of errors
D) Error of principle

5. Goodwill should be shown on the statement of financial position under the following heading:

A) Current Assets
B) Intangible Non-Current Assets
C) Fictitious Assets
D) Tangible Non-Current Assets

Solutions: