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CIMA Financial Reporting Sample Questions:

1.

2. The accounting profit before tax of an entity was $243,200 for the year ended 31 July 20X4.
The accounting profit included disallowable income from government grants of $48,000 and disallowable expenditure of $25,600 on entertaining expenses.
The entity also paid a $40,000 dividend to shareholders. The tax rates for the country were as follows:

Calculate the tax the entity is due to pay for the year ending 31 July 20X4.

A) $39,174
B) $57,546
C) $44,160
D) $47,840

3.

4. Which of the following is NOT a responsibility of the International Accounting Standards Board?

A) Final approval of interpretations by the international financial reporting interpretations committee.
B) Preparation of international financial reporting standards.
C) Withdrawal of international accounting reporting standards.
D) Fundraising for the international accounting standards committee foundation.

5. The United Kingdom (UK) uses a principle based approach to corporate governance which means:

Solutions: