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E1 CIMA Managing Finance in a Digital World Free Practice Exam Questions (2025 Updated)

Prepare effectively for your CIMA E1 Managing Finance in a Digital World certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.

Page: 5 / 5
Total 336 questions

Which of the following is an example of operational information?

A.

Payroll details

B.

 Inventory values

C.

Sales analysis

D.

Productivity measures

RT Company produces sub components for the vehicle industry Worldwide changes in government regulation and social attitudes mean that there is an increasing pace of demand for hybrid and electric vehicles

B is the long serving finance manager of RT Company. Using various data and information provided by the finance function staff, and experience built up over many years. B is considering how new challenges might be overcome and how opportunities might be maximised by the company

In the context of the information to impact framework, which of the following best describes B's overall contribution to the anticipated changes'?

A.

Acumen

B.

Assembling

C.

Analysing

D.

Applying

Company V has made the decision to operate using Six Sigma in order to manage the supply chain within the production process. What process below is the method used to continually monitor and chart a process while it is operating?

A.

Statistical process control

B.

Material requirements planning

C.

Lean thinking

D.

Reverse logistics

Which of the following is important when considering the 'Promotion' element of the marketing mix?

A.

Public relations

B.

Distribution channels

C.

After sales service

D.

Packaging

GBX has been receiving adverse customer feedback regarding late deliveries. As a result, it has decided to review its delivery logistics systems and related performance indicators.

The management team are discussing the introduction of a Key Performance Indicator (KPI) which allows a maximum of three hours to deliver a customer order

Which of the following SMART criteria is unlikely to apply to this KPI?

A.

Relevant

B.

Time-bound

C.

Specific

D.

Measurable

Which of the following provides the best description of an intranet?

A.

Employees use networked computers to access information held on a server.

B.

Authorised outsiders use networked computers to access information held on a server.

C.

 A worldwide network of computers.

D.

A collection of data organised to service many applications providing access to a wide variety of users.

During the past six months NVT has been undergoing a study, as part of a rationalisation programme to review the profitability of each of its retail stores.

As a result, 30 stores have been identified for closure T with a further 50 stores selected to receive an investment of funds in order to remain profitable going forward. Throughout this process NVTs finance function has worked alongside others in the organisation providing advice and guidance.

Which TWO of the following areas has the finance function most likely been involved with as part of the review?

A.

Project Appraisal

B.

Management accounting

C.

Taxation

D.

Project Management

E.

Financial planning and analysis

Which THREE operations management issues are associated with the primary activity of inbound logistics?

A.

Economic storage of raw materials                                                                                                                       

B.

Effective systems for inventory record keeping

C.

Efficient distribution of raw materials from warehouses to factory floor

D.

Production engineering capacity

E.

Effective quality control procedures

F.

Efficiency of facilities, plant and machinery

Candidate testing often forms part of the selection process. XYZ  is currently looking to recruit a Financial Analyst possessing advanced spreadsheet skills. You have been asked to devise a suitable selection test. Which of the following tests would be the most suitable?

A.

Personality test

B.

Cognitive test

C.

Specific ability test

D.

Numeracy and literacy test

You need to select potential candidates for the role of an office manager in a very busy office. An assessment centre has been organised to overcome the shortcomings associated with other selection techniques. Which of the following activities would be most suitable to assess candidates for the role of Office Manager?

A.

In-tray exercises

B.

A speech

C.

Self-appraisal

D.

A presentation

Which of the following is an example of a computerised system that is used to plan production requirements of raw materials, work-in-progress and finished goods?

A.

Material requirement planning (MRP)

B.

Total quality management (TQM)

C.

Enterprise resource planning (ERP)

D.

Manufacturing resource planning (MRP II)

General Data Protection Regulation (GDPR) legislation in the EU attempts to ensure that organisations follow certain principles.

Which of the following is contained in these principles?

A.

Data must be accurate, and where required, kept up-to-date

B.

Data can be kept for longer than necessary so long as it is secure.

C.

Data must be used lawfully but transparency is not required

D.

Data that is adequate and relevant can be used in any way

In which THREE of the following situations is Cloud a sensible IT strategy?

A.

Frequent software changes

B.

High impact if data is lost

C.

Need to reduce up front costs

D.

High in-house IT skills

E.

Bespoke software

F.

Unreliable internet access

AB Company has recently produced a very successful brand of washing powder which has achieved high market growth and a high market share. According to the Boston Consulting Group (BCG) matrix what is the product's next stage of development?

A.

Cash cow

B.

Star

C.

Question mark

D.

Dog

Introducing The Finance Function of PRS Company have been working with the Human enable which of the following business advantages'?

A.

An increase in value adding activities

B.

An increase in competences

C.

An increase in relationship management

D.

An increase in training

At which stage of a systems development lifecycle is systems architecture considered?

A.

Systems design

B.

Feasibility

C.

Implementation

D.

 System review

Clear career progression is an advantage of which type of organisational structure? 

A.

Functional

B.

Matrix

C.

Project based

D.

Multi-divisional

Which THREE of the following suggest an independent approach to organisational purchasing according to Reck and Long?

A.

Growing awareness of the financial importance of purchasing.

B.

Skills in negotiating the best price with suppliers.

C.

A move away from reactive to more professional approaches.

D.

Involvement in strategic planning.

E.

Treating suppliers as partners.

F.

Efficient responses to requests for supplies from departments.

XY Company manufactures in a highly competitive environment and achieves competitive advantage by regularly monitoring all the activities in its value chain. Which of the following would be affected by problems in the outbound logistics function?

A.

Distributing finished goods

B.

Storing raw material

C.

Increasing customer awareness

D.

Dealing with customer enquiries

L is employed within a startup organisation that has limited funds. The organisation is a firm of lawyers specialising in all legal fields, such as family law, property law, commercial law and litigation. Due to the relative infancy of the organisation, and restrictions on funds, they have to be prudent with their choice of information systems. They have all the IT they need for staff but the agreed best way to build the business has been to focus on building their client and prospective client base. Which of the following should the organisation invest in to help achieve this aim?

A.

Intranet

B.

Enterprise Resource Planning software

C.

Customer Relationship Management software

D.

Purchase cloud backup capabilities

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Total 336 questions
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