CIMA Financial Reporting : F1

F1 real exams

Exam Code: F1

Exam Name: Financial Reporting

Updated: Jun 02, 2026

Q & A: 247 Questions and Answers

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CIMA Financial Reporting Sample Questions:

1. In Country X, trading losses in any year can be carried back and set off against trading profits in the previous year, with any unrelieved losses carried forward to set against the first available trade profits in future years.
GH had the following taxable profits and losses in years 20X1 to 20X4:

What are the taxable profits for 20X4, assuming the most efficient use of the loss is made?

A) $100,000
B) $70,000
C) $95,000
D) $65,000


2. Company R use a defined benefit plan pension scheme. Employee UW has been working for Company R for
25 years. The defined benefit plan is 1.5% of the employee's annual salary during their time at the company, for every year of employment.
Employee UW started on a £18,000 per annum salary. After 10 years of employment. Employee UW received a promotion and began earning £22,000. After another 3 years of employment. Employee UW got promoted to a wage of £35,000, and is still on this salary now. How much pension has Employee UW accumulated since working at Company R?

A) £18,000
B) £6,750
C) £9,900
D) £9,375


3. Which TWO of the following are implications of employee income tax being paid to the tax authority through a Pay-As-You-Earn scheme?

A) The government can budget its cash flows more easily.
B) The tax authority deals directly with the employees rather than the employers.
C) Most of the administrative costs of collecting the tax are borne by the tax authority
D) The risk of employees defaulting on the payment of tax due is reduced
E) The tax is paid after the employee completes a tax return.


4. When a trading loss is incurred by an entity, the entity may be able to claim loss relief. The way in which loss relief is claimed vanes from country to country.
Which of the following is NOT normally a way of claiming loss relief for a trading loss?

A) Carry the trading loss backwards against trading profits in previous periods.
B) Offset the trading loss against group entity profits.
C) Offset The trading loss against its trading profits in future periods
D) Offset the trading loss against capital gams in previous periods


5.


Solutions:

Question # 1
Answer: C
Question # 2
Answer: C
Question # 3
Answer: A,D
Question # 4
Answer: D
Question # 5
Answer: Only visible for members

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