F1 Study Materials: Financial Reporting & F1 Certification Training

CIMA Financial Reporting - F1 certification

Exam Code: F1

Exam Name: Financial Reporting

Updated: Nov 04, 2026

Q & A: 247 Questions and Answers

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About CIMA Financial Reporting - F1 exam dumps

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CIMA F1 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Financial Statements45%- Preparation of single entity financial statements
  • 1. Statement of changes in equity
    • 2. Statement of financial position
      • 3. Statement of profit or loss
        • 4. Statement of cash flows
          - Application of IFRS standards
          • 1. IAS 2 Inventories
            • 2. IAS 16 Property, Plant and Equipment
              • 3. IAS 36 Impairment of Assets
                • 4. IFRS 16 Leases
                  - Basic consolidated financial statements
                  - Interpretation and analysis of financial statements
                  Topic 2: Managing Cash and Working Capital25%- Short-term financing options
                  - Working capital cycle and objectives
                  - Management of receivables, inventory and payables
                  - Cash management and forecasting
                  Topic 3: The Regulatory Environment of Financial Reporting10%- IFRS Foundation and IASB structure
                  - Principles vs rules-based regulation
                  - Ethics in financial reporting
                  - Conceptual framework and regulatory bodies
                  Topic 4: Principles of Taxation20%- Indirect taxes overview
                  - Deferred tax concepts
                  - Current tax calculation
                  - Tax system and types of taxes

                  CIMA Financial Reporting Sample Questions:

                  Question #1

                  In accordance with The Conceptual Framework for Financial Reporting, faithful representation is a fundamental qualitative characteristic.
                  To be a faithful representation financial information must be as far as possible which THREE of the following?

                  • A. Free from error
                  • B. Complete
                  • C. Timely
                  • D. Understandable
                  • E. Neutral
                  • F. Comparable
                  Reveal Solution  Discussion  0

                  Correct Answer: A,B,E  🗳️

                  Question #2

                  EF purchased an asset on 1 September 20X4 for $800,000, exclusive of import duties of $30,000. EF is resident in country Y where indexation is allowed on purchase costs when the asset is disposed of.
                  EF sold the asset on 31 August 20X9 for $1,500,000 incurring transaction charges of $20,000. The indexation factor increased by 40% in the period from 1 September 20X4 to 31 August 20X9.
                  Capital gains are taxed at 30%.
                  What is the tax due on disposal of the asset?

                  • A. $102,600
                  • B. $108,000
                  • C. $95,400
                  • D. $101,400
                  Reveal Solution  Discussion  0

                  Correct Answer: C  🗳️

                  Question #3

                  Which of the following methods could be used by a tax authority to reduce tax evasion and avoidance?

                  • A. Reduce requirements to have tax returns audited.
                  • B. Reduce penalties for avoidance.
                  • C. Increase tax rates to compensate for losses due to evasion.
                  • D. Simplify the tax structure, minimizing allowances and exemptions.
                  Reveal Solution  Discussion  0

                  Correct Answer: D  🗳️

                  Question #4

                  The external auditors have completed their audit and have discovered a material but not pervasive error in the financial statements of JK.
                  The directors of JK have refused to change the financial statements.
                  What type of modified audit report should be issued?

                  • A. Emphasis of matter opinion
                  • B. Disclaimer of opinion
                  • C. Adverse opinion
                  • D. Qualified opinion
                  Reveal Solution  Discussion  0

                  Correct Answer: D  🗳️

                  Question #5

                  Company Y is using some of the money from a share issue to purchase a new office building. The company is also using some of the money to purchase inventories. Which method of financing is this?

                  • A. Conservative financing
                  • B. Aggressive financing
                  • C. Matching financing
                  Reveal Solution  Discussion  0

                  Correct Answer: A  🗳️

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