CIMA E1 exam : Managing Finance in a Digital World

E1 Exam Simulator
  • Exam Code: E1
  • Exam Name: Managing Finance in a Digital World
  • Updated: Sep 16, 2026
  • Q & A: 335 Questions and Answers

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CIMA E1 Exam Syllabus Topics:

SectionObjectives
Data and Information in Organisations- Data analytics and decision-making support
- Data collection, management, and quality
Information Systems and Technology- Cybersecurity and data governance basics
- Enterprise systems and financial information systems
The Digital World and Business Environment- Digital transformation in finance and business models
- Impact of digital technologies on organisations
Finance Function in a Digital Environment- Automation and digital finance processes
- Role of finance professionals in digital organisations

CIMA Managing Finance in a Digital World Sample Questions:

Question #1

A business is seeking to introduce TQM. It gets some advice from a business consultant on how to ensure it is successful in its implementation. Which of the following are likely to be included in the advice they receive?
Select ALL that apply.

  • A. Ensure a clear budget is identified for TQM.
  • B. Give a fixed time scale for the TQM project.
  • C. Gain full commitment from your entire management team.
  • D. Communicate frequently to your business.
  • E. Encourage the sharing of ideas.
  • F. Motivate and train your staff to take up the ethos of quality.
  • G. Introduce a TQM department in the organisational structure.
  • H. Ensure TQM gets strategic focus.
  • I. Get your suppliers involved in TQM.
Reveal Solution  Discussion  0

Correct Answer: C,D,E,F,H,I  🗳️

Question #2

AcrossThePond is a ferry company that has just slashed their prices for trips scheduled to Europe between August and November - they are now almost half as cheap!
Why would AcrossThePond do this?
Select ALL that apply.

  • A. To increase their revenues.
  • B. So that they can fully utilise their production capacity.
  • C. So that they can can better manage their supply.
  • D. So that they can increase consumer awareness of their summer services.
  • E. So that they can increase demand to match supply.
Reveal Solution  Discussion  0

Correct Answer: B,E  🗳️

Question #3

Which of the following is a reason why businesses need to prepare statutory reports?

  • A. To help compare budget with actual performance.
  • B. To ensure they have enough inventory on hand for production.
  • C. To decide on their foreign exchange hedging policy.
  • D. To inform the investors how profitable the business is.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #4

Which of the following is a potential advantage of outsourcing?

  • A. Reduced core competencies
  • B. Finality of decision
  • C. Reduced capital expenditure
  • D. Reduced transaction costs
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #5

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

  • A. Treating suppliers as partners.
  • B. Efficient responses to requests for supplies from departments.
  • C. Skills in negotiating the best price with suppliers.
  • D. A move away from reactive to more professional approaches.
  • E. Involvement in strategic planning.
  • F. Growing awareness of the financial importance of purchasing.
Reveal Solution  Discussion  0

Correct Answer: C,D,F  🗳️

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