Free CIMA F1 Exam Dumps Questions & Answers

According to IAS 21 The Effects of Changes in Foreign Exchange Rates, an entity should determine its functional currency.
Which of the following is NOT a factor that should be considered by an entity when determining its functional currency?

• A.  The currency used for published financial reports.
• B.  The currency of the country whose competitive forces determine prices of goods and services.
• C.  The currency that mainly influences labour, material and other costs.
• D.  The currency that mainly influences selling prices of the entity's goods and services.

Which of the following is a feature of a direct tax?

• A.  It is not levied on the eventual payer of the tax.
• B.  The formal incidence and effective incidence are usually the same.
• C.  It cannot be related to the individual circumstances of the tax payer.
• D.  It is levied on one part of the economy with the intention that it will be passed on to another.

Which of the following is not a possible tax rate structure?

• A.  Progressive
• B.  Direct
• C.  Proportional
• D.  Regressive

Which of the following would NOT be assessed for tax under a Pay-As-You-Earn system?

• A.  Benefits in kind received by an employee.
• B.  Profit-sharing payments received by an employee.
• C.  The wealth of an employee.
• D.  Commissions received by an employee.

Which THREE of the following matters should an entity consider when determining the credit terms granted to a customer?

• A.  Risk of non-payment
• B.  Bargaining power of the customer
• C.  Typical credit terms operating within the industry
• D.  Selling price of the goods being sold to the customer
• E.  Discount offered by suppliers for early payment
• F.  Number of suppliers