Study and Prepare with CIMA F1 study material, That's Easy to pass With PracticeMaterial!
Last Updated: Jun 21, 2026
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1. RST operates in Country X where the tax rules state entertaining costs and accounting depreciation are disallowable for tax purposes.
In year ending 31 May 20X4, XYZ made an accounting profit of $480,000.
Profit included $16,300 of entertaining costs and $15,150 of income exempt from taxation.
XYZ has plant and machinery with accounting depreciation amounting to $24,200 and tax depreciation amounting to $45,200.
Calculate the tax charge for the year ended 31 May 20X4 assuming all profits are taxed at 25%.
A) $124,963
B) $125,538
C) $114,463
D) $115,038
2. Which of the following would be the most immediate impact of overtrading?
A) A shortage of inventory
B) An inability to pay trade payables.
C) Having to offer bulk discounts to customers.
D) An inability to pay dividends to shareholders.
3. The Code of Ethics lists five fundamental principles. One of these is.
4. Which of the following is correct?
The primary purpose of a cash budget prepared on a monthly basis is to determine:
A) next month's sales volumes.
B) the amount of inventory to purchase in the following month.
C) when to pay employees salaries.
D) whether there will be sufficient cash in the bank to meet requirements.
5. Which of the following is NOT a principle in the CIMA Code of Ethics for Professional Accountants?
A) Integrity
B) Objectivity
C) Timeliness
D) Professional competence and due care
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: Only visible for members | Question # 4 Answer: D | Question # 5 Answer: C |
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