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New App for CIMA students
A new app will help CIMA students get through the Certificate in Business Accounting, says Barry Walsh. So get downloading now – the app is free!
A new app has been released for the 2017 CIMA Certificate in Business Accounting. The CIMA Cert BA app from smartMCQ enables students to use their smartphone to study wherever and whenever they have a spare moment.
The app is free to download and comes with four free tests. To get it visit the App Store or Google Play on your smartphone or tablet, search ‘CIMA Cert BA’ and download the smartMCQ app.
Here’s a taster for you:
BA1 Fundamentals of Business Economics
Which one of the following taxes is an indirect tax?
• A tax on the income of individuals.
• A tax added to the sale price of goods and services.
• A property tax that the property owner is required to pay.
• A tax on the profit of businesses.
The correct answer is ‘A tax added to the sale price of goods and services’. Indirect taxes are taxes on goods and services, for example sales tax. Direct taxes are taxes on income or wealth. Income tax, corporation tax, property tax and inheritance tax are examples of direct taxes.
BA2 Fundamentals of Management Accounting:
Which one of the following activities is associated with financial accounting rather than management accounting?
• Working closely with senior managers to achieve strategic goals.
• Reporting financial performance to external stakeholders.
• Providing information to managers.
• Assisting managers to make business decisions.
The correct answer is ‘Reporting financial performance to external stakeholders’. External reporting is a financial accounting activity. The other three activities are ‘typical’ management accounting activities.
BA3 Fundamentals of Financial Accounting:
The Smoothie Company pays rent quarterly in advance, making payments on January 1, April 1, July 1 and October 1 each year. The company’s annual rent was increased from $72,000 per year to $84,000 per year effective from October 1 20X8. What rent expense should the company report in their statement of profit or loss and other comprehensive income for the year August 1 20X8 to July 31 20X9?
The correct answer is $82,000
August 20X8 to September 20X8: $72,000 / 12 x 2 = $12,000
October 20X8 to July 20X9: $84,000 / 12 x 10 = $70,000
$12,000 + $70,000 = $82,000
BA4 Fundamentals of Ethics, Corporate Governance and Business Law:
Two statements relating to ethics follow.
1. Society expects professional accountants to act in the public interest.
2. CIMA’s Code of Ethics for Professional Accountants does not apply to registered CIMA students as they are not yet professionally qualified.
Is each statement true or false?
• Statement 1 is true, Statement 2 is false.
• Both statements are true.
• Statement 1 is false, Statement 2 is true.
• Both statements are false.
The correct answer is ‘Statement 1 is true, Statement 2 is false’. Society expects professional accountants to act in the public interest. This reflects the higher expectations society has today towards the conduct of businesses and to those who work in business. CIMA’s Code of Ethics for Professional Accountants applies to CIMA members and to registered students.
• Barry Walsh is managing director of the Content Team
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