CIMA E1 : Managing Finance in a Digital World

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CIMA Managing Finance in a Digital World Sample Questions:

1. Data profiling forms an essential element of the extraction transformation and loading process. Which of the following best describes data profiling?

A) Examining the data to understand its content formats and structure.
B) Data being processed into the destination database ready for use
C) Storing data in a systematic and logical way ready for further interrogation.
D) The process of harvesting data from source databases and locations

2. A new manufacturing firm has been growing very rapidly. Both its output and hired staff have increased dramatically, and it's looking like the business will have to physically expand sometime in the near future.
The company's managing director decides to outsource the payroll of the business to an external provider.
What are his likely reasons for making this decision?

A) He is finding it difficult to keep on top of all of the support activities he has to provide.
B) There is more confidentiality when using external providers.
C) He is finding managing the payroll complicated and time consuming.
D) It will allow him to focus on other priorities.
E) It will improve the accuracy in the payroll.
F) Better management information will be supplied.
G) Payroll requires an expertise on tax and legislation that he does not have in house.

3. The process of human resources planning would involve the following: strategic analysis, forecasting, job analysis and recruitment and training. Which THREE of the following are issues relevant to forecasting?

A) Cost reduction plans
B) New technology
C) Appraisal
D) Divestments
E) Induction
F) Rewards

4. H works in the finance function and has been asked by the Finance Manager to draft a report to be part of the annual update to go out to all the employees of the organisation H informs the Finance Manager the intention is to include a whole range of financial information including ratios and comparisons for the previous years in the report Which of the following qualities of good information should H be most concerned with when producing the report?

A) Accurate
B) Relevant
C) Adaptable
D) Questioning

5. M is employed by an organisation that operates a chain of high street coffee shops. She has made a decision to purchase a failing cake shop in order to take it over and expand the presence of the organisation in the local area. According to Mintzberg, which part of the organisation does M belong to?

A) Middle line
B) Strategic apex
C) Operating core
D) Techno-structure

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