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Learn Why NBRC Cima F1 Dumps is important for

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Did You Know?
Cima Financial Reporting and Taxation
one of
The most popular exam now a days.
The name of quality and
success. Exactcert
provide 100% passing assurance
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Cima F1 listed In world most
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Here are some sample questions for you.

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Question No 1:

A certificate of deposit is best described as:

A. A debt instrument which offers a fixed rate of interest over a fixed period of time and with a fi
xed redemption value.
B. A negotiable instrument which provides evidence of a fixed term deposit with a bank.
C. A document which sets out a commitment to deposit a sum of money at a specified point in ti
me.
D. A certificate which shows ownership of part of the share capital of a company.

Answer: B

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Question No 2:

A company is considering offering its customers an early settlement discount. The company curr
ently receives payments from customers on average 65 days after the invoice date. The compan
y is considering offering a 2% early settlement discount for payment within 30 days of the invoic
e date.
The effective annual interest rate of the early settlement discount using compound interest met
hodology and assuming a 365 day year is:

A. 22.94%
B. 20.86%
C. 23.45%
D. 27.85%

Answer: C https://www.exactcert.com/F1-exam-questions.html
Question No 3:

The material yield variance for August is:

A. $200 Adverse
B. $1,740 Adverse
C. $200 Favourable
D. $1,740 Favourable

Answer: C

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Question No 4:

The correct definition of a bill of exchange is:

A. A negotiable instrument which provides evidence of a fixed-term deposit with a bank


B. A document setting out a commitment to pay a sum of money at a specified point in time
C. A debt obligation with a long term maturity usually issued by companies and governments
D. A legal document showing the right to receive interest and capital repayment

Answer: B

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Question No 5:

A company has a money cost of capital of 9%. The rate of inflation is 3%. The companys real cos
t of capital is nearest to:

A. 6.0%
B. 12.0%
C. 12.3%
D. 5.8%

Answer: D

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Question No 6:

The details of four short term investments are as follows:

Investment A pays interest of 1.7% every 3 months


Investment B pays interest of 3.4% every 6 months
Investment C pays interest of 5.4% every 9 months

Investment D pays interest of 7.0% every 12 months


The investment that gives the highest effective annual rate of interest, assuming that the interest is reinvested, is:

A. Investment A
B. Investment B
C. Investment C
D. Investment D

Answer: C

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Question No 7:

A decision maker who makes decisions using the expected value criterion would be classified as:

A. Risk averse
B. Risk seeking
C. Risk neutral
D. Risk spreading

Answer: C

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Question No 8:

A companys management is considering investing in a project with an expected life of 4 years. It


has a positive net present value of $180,000 when cash flows are discounted at 8% per annum.
The projects cash flows include a cash outflow of $100,000 for each of the four years. No tax is
payable on projects of this type.
The percentage increase in the annual cash outflow that would cause the companys manageme
nt to reject the project from a financial perspective is, to the nearest 0.1%:

A. 54.3%
B. 45.0%
C. 55.6%
D. 184.0%

Answer: A https://www.exactcert.com/F1-exam-questions.html
Question No 9:

The economic order quantity (EOQ) for this model of calculator will be:

A. 2,438 units
B. 771 units
C. 67 units
D. 2,060 units

Answer: D

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Question No 10:

FP has decided not to use the EOQ and has decided to order 2,600 calculators each time an
order is placed. The total ordering and holding costs per annum will be:

A. $5,240
B. $19,800
C. $208,014
D. $3,420

Answer: B

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