CIMA CIMAPRA19-F01-1 Quiz 1 Topic 1 Questions 1-5

Question: 1

Which THREE of the following statements about government grants are INCORRECT?

AA grant is recognised as revenue

BGrants must not be deducted from the related expenses in financial statements

CCapital grants relate to cash inflow and outflow

DA compensatory grant should be recognised in statements when it is received, not when the expenses it applies to occurred

EA grant is recognised only when there is reasonable assurance that the entity will comply with any conditions attached to the grant

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Question: 2

Mr K is being pressured by his manager to change figures in his report so that it will improve his manager's bonus.

His manager has promised Mr K a promotion if he agrees to do this.

What threats is Mr K facing?

AIntimidation and familiarity

BFamiliarity and self-interest

CSelf-review and advocacy

DIntimidation and self-interest

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Question: 3

Which of the following is NOT a type of supply for value added tax (VAT)?

AFixed

BStandard-rated

CExempt

DZero-rated

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Question: 4

OP holds an investment property purchased on 1 January 20X3 for $700,000 with a useful economic life of 25 years.

At 31 December 20X5 the fair value of the investment property was $750,000 with a revised useful economic life of 25 years from that date.

OP has been carrying the investment property using the cost model until 31 December 20X5.

The directors wish to change their valuation method to fair value in accordance with IAS 40 Investment Property.

Which of the following is the correct treatment of the revaluation gain and the value of the property in the statement of financial position at 31 December 20X5?

AA gain of $134,000 taken to the statement of profit or loss and $750,000 shown on the statement of financial position.

BA gain of $106,000 taken to the statement of profit or loss and $720,000 shown on the statement of financial position.

CA gain of $134,000 taken to other comprehensive income and $750,000 is shown on the statement of financial position.

DA gain of $106,000 taken to other comprehensive income and $720,000 is shown on the statement of financial position.

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Question: 5

Which THREE of the following must an auditor consider in order to form an opinion on the truth and fairness of an entity's financial statements?

AWhether the entity has kept proper accounting records.

BWhether the entity has complied with the relevant legislator requirements in respect of the necessary disclosures.

CWhether all the information and explanations necessary for the purposes of the audit have been received.

DWhether every transaction that underpins the financial statements has been correctly recorded.

EWhether the entity has been exposed to any fraud.

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CIMA CIMAPRA19-F01-1 Quiz:1 Topic:1 Questions:1-5