CIMA Cheat Sheet 2026

The 30 highest-yield CIMA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which inventory valuation method is prohibited under IFRS? → Last-In, First-Out (LIFO)
2. What does 'limited liability' mean for shareholders of a corporation? → Shareholders' losses are limited to the amount they invested in the company
3. The PESTEL framework is used to analyze which type of business environment? → Macro-environmental external factors
4. What does 'tone at the top' refer to in corporate governance? → The ethical climate and culture set by senior management and the board
5. Which financial statement reports a company's assets, liabilities, and equity at a specific point in time? → Balance Sheet
6. A bond is trading at a discount. What does this indicate about the bond's coupon rate relative to current market interest rates? → The coupon rate is lower than current market rates
7. Which of the following best defines 'credit risk' for a business? → The risk that a counterparty will fail to meet its financial obligations
8. Which performance measurement framework uses a 'results and determinants' matrix, distinguishing between lagging and leading performance indicators? → Results and determinants framework (Fitzgerald and Moon)
9. What is 'working capital management' primarily concerned with? → Managing the day-to-day liquidity of current assets and current liabilities
10. What is 'residual risk'? → The risk that remains after controls and mitigation measures have been applied
11. Under US tax law, what is the 'matching principle' in the context of corporate taxation? → Income and related expenses should be recognized in the same period
12. What is 'financial leverage' in the context of corporate finance? → The use of debt financing to amplify returns on equity
13. Which term describes the level of risk an organization is willing to accept in pursuit of its objectives? → Risk appetite
14. In the context of corporate governance, what does the term 'agency problem' refer to? → Conflict of interest between principals (shareholders) and agents (managers)
15. In contract law, which element is described as 'something of value exchanged between parties to a contract'? → Consideration
16. Under IAS 36, an impairment loss is recognized when an asset's carrying amount exceeds its: → Recoverable amount
17. Which of the following best describes the purpose of an 'internal control system' in an organization? → To provide reasonable assurance that objectives are achieved and risks are managed
18. Which costing method is most appropriate for pricing decisions in the short run, where fixed costs are already committed? → Marginal costing
19. A flexible budget is a budget that is __________. → changed in response to changes in the level of activity
20. Ansoff's Matrix suggests that 'market development' involves which of the following strategies? → Selling existing products to new markets
21. Which strategic option involves an organization withdrawing from a particular market or business area? → Retrenchment
22. Earnings per share (EPS) is calculated by dividing: → Net income by weighted average shares outstanding
23. Which risk management technique involves creating a reserve fund to cover potential future losses? → Self-insurance (risk retention fund)
24. In CIMA's strategic planning process, which analysis tool examines Strengths, Weaknesses, Opportunities, and Threats? → SWOT
25. In transfer pricing, what is the general rule for setting a minimum transfer price? → Minimum transfer price = marginal cost + opportunity cost of the transferring division
26. In the COSO ERM framework, which component involves setting objectives consistent with the organization's risk appetite? → Objective setting
27. Which governance concept separates the role of CEO from Chairman to reduce concentration of power? → Independence of leadership
28. Which CIMA ethical principle requires a professional accountant to be straightforward and honest in all professional and business relationships? → Integrity
29. Which US federal law governs employer-employee relationships and sets minimum wage and overtime requirements? → The Fair Labor Standards Act (FLSA)
30. In treasury management, what is the purpose of a 'cash pooling' arrangement? → Centralizing group cash balances to reduce overall borrowing costs and optimize interest