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Updated: Jul 14, 2026
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CIMA Fundamentals of Financial Accounting Sample Questions:
1. Which of the following is an error of principle?
A) Recording a transaction in the wrong ledger account
B) Using the wrong amount when recording a transaction
C) Recording a transaction in the wrong type of account
D) A transaction recorded twice in the ledger accounts
2. Refer to the Exhibit.
On 1 May year 1 a company pays insurance of $1,800 for the period to 30 April year 2 What is the charge to the income statement and the entry in the statement of financial position for year 1 ended
30 November?
A) D
B) C
C) A
D) B
3. Accounting standards are needed so that financial statements will fairly and consistently describe financial performance.
What are accounting standards an example of?
A) Cost accounting
B) Cash accounting
C) Principles based accounting
D) Rules based accounting
4. AB sells two products ,X and Y.
The following information was available at AB's year-end, 31 December 20X6:
At 31 December 20X6 AB held 800 units of Product X and 400 units of Product Y What is the value that will be included in inventories in AB's statement of financial position as at 31 December
20X6?
A) $138,000
B) $120,000
C) 5134,000
D) $118,000
5. Which of the following explains the concept of capital maintenance?
A) the cost of replacing an entity's non-current assets
B) the raising of new capital by the issue of shares
C) the cost of maintaining an entity's non-current assets in good working condition
D) retaining sufficient profits to ensure that closing net assets are at least equal in value to net assets at the beginning of the period
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: D |
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