Pass the CIMA Operational F1 Questions and answers with ExamsMirror

CDO is an entity that is preparing to apply to its local stock market for a listing. CDO is currently run by a board of ten directors, each of whom manages a department of CDO. The board is chaired by Ms E who is also CDO's Chief Executive Officer.

Which TWO of the following actions would assist CDO to meet corporate governance regulations?

EFG prepares financial statements to 31 December each year. EFG has the following receivable days based on the year end receivable balances:

Which of the following would be a reason for this decrease in receivable days?

HI commenced business on 1 April 20X3. Sales in April 20X3 were $30,000. This is forecast to increase by 2% per month.

Credit sales accounted for 50% of sales. Credit sales customers are allowed one month to pay; 75% of April credit customers paid on time. A further 20% are expected to pay after more than one month, but before two months. The remaining 5% are not expected to pay. All these percentages are expected to continue in the near future.

Calculate the total amount of cash HI should forecast to be received in June 20X3.

Give your answer to the nearest whole $.

Which of the following is a feature of value added tax (VAT)?

On 1 July 20X8 JKL has 100 units of inventory, which cost $8 each. The following transactions arose during the month of July:

JKL values inventory using the first in. first out method.

What is the value of JKL's inventory at 31 July 20X8?

Give your answer to the nearest $.

FG purchased 40% of the equity shares of QR and exerted significant influence over the board of the directors.

QR will be classified as____of FG.

An entity had a current tax liability of $187,000 in its statement of financial position as at 30 September 20X5. It was subsequently negotiated and eventually agreed with the tax authorities that the entity would pay $192,000 and this was paid on 6 January 20X6.

The entity's management estimate that the tax due on profits for the year to 30 September 20X6 is $231,000.

Calculate the entity's corporate income tax expense included in its statement of profit or loss for the year ended 30 September 20X6.

Give your answer to the nearest whole $000.

A building was purchased on 1 January 20X1 for $300,000 and had a useful economic life of 40 years. On 1 January 20X5 the building was revalued by a professional surveyor at $450,000. Directors decided to incorporate the revalued amount into the financial statements.

The accounting entries to record the initial revaluation of the building in the financial statements for the year ended 31 December 20X5 will be to debit building cost $150,000 and then:

XY purchased a building on 1 April 20X1 for $300,000 with a useful economic life of 30 years. On 1 April 20X7 the building was revalued at $525,000.

What will the new depreciation charge be following the revaluation?

Give your answer as a whole number.

A non-executive director of a company is somebody who: