2025 CIMA Certification Exam Study Guide:
What to Expect, How to Prepare, and Top
Tips to Pass
Question 1:
Which of the following best defines management accounting?
A. The preparation of financial statements for external users.
B. The application of the principles of accounting and financial management to create, protect,
preserve, and increase value for stakeholders.
C. The auditing of financial records to ensure compliance with regulations.
D. The process of recording daily financial transactions.
Rationale:
B. The provided definition states, "the application of the principles of accounting and financial
management to create, protect, preserve and increase value for the stakeholders of for profit and
not for profit enterprises in the public and private sectors." Options A, C, and D describe aspects
of financial accounting or auditing, not the comprehensive role of management accounting.
Question 2:
The primary focus of management accounting is to:
A. Minimize operational costs at all times.
B. Ensure compliance with financial reporting standards.
C. Add value through relevant information by communication and trust.
D. Prepare tax returns accurately.
Rationale:
C. The text explicitly states, "focus of mgmt accounting - add value through relevant information
by communication and trust." The other options represent important but not the primary or
overarching focus of management accounting.
,Question 3:
The Global Management Accounting Principles include all of the following EXCEPT:
A. Influence
B. Relevance
C. Transparency
D. Trust
Rationale:
C. The text lists "influence, relevance, trust, value" as the global management accounting
principles. Transparency is not listed as one of these core principles.
Question 4:
Raw data becomes information when it has been:
A. Stored in a database.
B. Collected from various sources.
C. Processed into a useful form.
D. Presented without analysis.
Rationale:
C. The definition provided is "once raw data has been processed by us into useful form, it can be
called information."
Question 5:
All of the following are characteristics of good information, as per the ACCURATE acronym,
EXCEPT:
A. Accurate
B. Authoritative
C. Accessible
D. Timely
, Rationale:
C. The ACCURATE acronym stands for Accurate, Complete, Cost beneficial, Understandable,
Relevant, Authoritative, Timely, Easy to Use. "Accessible" is not explicitly part of this acronym.
Question 6:
Decisions that impact the entire organization and are long-term in nature are categorized at
which level of decision-making?
A. Operational
B. Tactical
C. Strategic
D. Administrative
Rationale:
C. The text describes strategic level decisions as those that "-impact entire org - long term".
Question 7:
Which of the following is a characteristic of decisions made at the operational level?
A. Infrequent and subjective.
B. Long-term impact on the entire organization.
C. Short-term, even daily, and highly detailed.
D. Medium-term impact affecting only part of the organization.
Rationale:
C. The text states that operational level decisions are "-at business unit level - short term, even
daily - focused - detailed".
Question 8:
The purposes of management accounting include all of the following EXCEPT:
A. Planning
B. Control
What to Expect, How to Prepare, and Top
Tips to Pass
Question 1:
Which of the following best defines management accounting?
A. The preparation of financial statements for external users.
B. The application of the principles of accounting and financial management to create, protect,
preserve, and increase value for stakeholders.
C. The auditing of financial records to ensure compliance with regulations.
D. The process of recording daily financial transactions.
Rationale:
B. The provided definition states, "the application of the principles of accounting and financial
management to create, protect, preserve and increase value for the stakeholders of for profit and
not for profit enterprises in the public and private sectors." Options A, C, and D describe aspects
of financial accounting or auditing, not the comprehensive role of management accounting.
Question 2:
The primary focus of management accounting is to:
A. Minimize operational costs at all times.
B. Ensure compliance with financial reporting standards.
C. Add value through relevant information by communication and trust.
D. Prepare tax returns accurately.
Rationale:
C. The text explicitly states, "focus of mgmt accounting - add value through relevant information
by communication and trust." The other options represent important but not the primary or
overarching focus of management accounting.
,Question 3:
The Global Management Accounting Principles include all of the following EXCEPT:
A. Influence
B. Relevance
C. Transparency
D. Trust
Rationale:
C. The text lists "influence, relevance, trust, value" as the global management accounting
principles. Transparency is not listed as one of these core principles.
Question 4:
Raw data becomes information when it has been:
A. Stored in a database.
B. Collected from various sources.
C. Processed into a useful form.
D. Presented without analysis.
Rationale:
C. The definition provided is "once raw data has been processed by us into useful form, it can be
called information."
Question 5:
All of the following are characteristics of good information, as per the ACCURATE acronym,
EXCEPT:
A. Accurate
B. Authoritative
C. Accessible
D. Timely
, Rationale:
C. The ACCURATE acronym stands for Accurate, Complete, Cost beneficial, Understandable,
Relevant, Authoritative, Timely, Easy to Use. "Accessible" is not explicitly part of this acronym.
Question 6:
Decisions that impact the entire organization and are long-term in nature are categorized at
which level of decision-making?
A. Operational
B. Tactical
C. Strategic
D. Administrative
Rationale:
C. The text describes strategic level decisions as those that "-impact entire org - long term".
Question 7:
Which of the following is a characteristic of decisions made at the operational level?
A. Infrequent and subjective.
B. Long-term impact on the entire organization.
C. Short-term, even daily, and highly detailed.
D. Medium-term impact affecting only part of the organization.
Rationale:
C. The text states that operational level decisions are "-at business unit level - short term, even
daily - focused - detailed".
Question 8:
The purposes of management accounting include all of the following EXCEPT:
A. Planning
B. Control
