F1 Financial Reporting Exam Questions and Answers

QUESTION: 26

The following information relates to ABC.

Which of the following would be a reason for the movement in the trade receivable days?

A new credit controller was appointed during the year ended 30 June 20X3 who has been chasing customers for payment.
A system of early settlement discount was introduced during the year ended 30 June 20X3 which was taken up by quite a few customers.
One customer who regularly took 120 days to pay their invoices stopped buying goods from ABC during the year ended 30 June 20X3.
It was decided during the year ended 30 June 20X3 to stop undertaking credit checks on new customers.

Answer(s): D

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QUESTION: 27

Which of the following is NOT a source of short-term finance?

Increase in trade receivables
Increase in trade payables
Debt factoring
Increase in a bank overdraft

Answer(s): A

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CORRECT TEXT
AAA has the following working capital ratios at 30 March 20X4:

During the year ended 30 March 20X4 credit purchases were $3,600 and at 30 March 20X4 the outstanding trade payables amounted to $522.
The year ended 30 March 20X4 was not a leap year.
Calculate the working capital cycle for AAA.
Give your answer to one decimal place.

26.2 Days

Answer(s): A

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QUESTION: 29

CORRECT TEXT
An entity bought a capital item for $110,000 on 1 March 20X4 incurring legal fees at the date of purchase of $2,500.
On 1 May 20X4 additional costs classified as capital expenditure by the tax rules of the country of $25,000 were incurred in respect of the asset. On 1 June 20X4 repairs not classified as capital expenditure were incurred at a cost of $15,000.
The asset was sold for $250,000 on 30 November 20X8 and costs to sell were incurred of $4,300.
Calculate the chargeable gain on the disposal.
Give your answer to the nearest $.

$108200

Answer(s): A

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QUESTION: 30

Which THREE of the following would be included in a cash budget?

Interest payments
Depreciation on machinery
Salaries paid to staff
Impairment of goodwill
Profit on disposal of motor vehicle
Dividends received from associate

Answer(s): A,C,F

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CIMA F1 Financial Reporting Exam (page: 6)
CIMA F1 Financial Reporting
Updated on: 09-Feb-2026

QUESTION: 26

QUESTION: 27

QUESTION: 28

QUESTION: 29

QUESTION: 30

CIMA F1 Financial Reporting Exam (page: 6) CIMA F1 Financial Reporting Updated on: 09-Feb-2026

QUESTION: 26

QUESTION: 27

QUESTION: 28

QUESTION: 29

QUESTION: 30

CIMA F1 Financial Reporting Exam (page: 6)
CIMA F1 Financial Reporting
Updated on: 09-Feb-2026