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CIMA E1 Practice Q&A's

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CIMA E1 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Role of the Finance Function20%- Evolution of the finance function
- Decision support and business partnering
- Purpose and value creation
- Stewardship, governance and ethics
Topic 2: Finance Interacting with the Organisation20%- Cross-functional collaboration
- Communication and influencing skills
- Supporting functional and strategic goals
- Relationship with operations, sales and HR
Topic 3: Data and Information in a Digital World20%- Data characteristics, quality and governance
- Data analysis and interpretation
- Security, privacy and compliance
- Information systems and reporting
Topic 4: Shape and Structure of the Finance Function20%- Centralised vs decentralised finance
- Organisational structures and models
- Roles, skills and competencies
- Shared services and outsourcing
Topic 5: Technology in a Digital World20%- Digital technologies: cloud, AI, automation, analytics
- Emerging technologies and risks
- Digital transformation and adoption
- Impact of technology on finance processes

CIMA Managing Finance in a Digital World Sample Questions:

1. Which of the following is an example of a formal relationship in which two organisations legally contract to co-operate in defined ways to achieve specific commercial objectives?

A) Strategic Alliance
B) Shared Service Centre
C) Outsourcing
D) Merger


2. An effective Corporate Social Responsibility (CSR) strategy can offer which of the following benefits to an organisation.
Select ALL that apply.

A) Differentiation
B) Lower administration costs
C) Lower production costs
D) Strong brand
E) Lower salary costs
F) Lower expectations of society


3. Which of the following describes a disadvantage of succession planning?

A) It motivates employees as rewards are visible.
B) It develops career structures.
C) It can be cheaper than advertising.
D) Planning requires resources to manage it.


4. Which of the following gives the correct combination of valid stages in the HR cycle?

A) Selection, performance, appraisal, rewards, training and development
B) Selection, culture, recruitment, induction rewards, budgets
C) Selection, performance, culture, appraisal, rewards, training and development
D) Recruitment, selection, induction, rewards, budgets


5. One of the key corporate governance factors within an organisation is that of responsible planning and management of resources. This is often referred to as stewardship. Whilst this is the responsibility of all directors, financial resources are overseen by the financial director. The finance department, under the direction of the financial director, issues weekly staff performance reports to line managers and department heads, annual statistical information to local government departments and quarterly high level results statements to shareholders. Why is stewardship such an important responsibility of company directors and the finance function?

A) It is the interest of all stakeholders
B) It is the interest of all shareholders
C) It is the interest of the employees
D) It is the interest of the government


Solutions:

Question # 1
Answer: A
Question # 2
Answer: A,C,D
Question # 3
Answer: D
Question # 4
Answer: A
Question # 5
Answer: A

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