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CIMA E1 : Managing Finance in a Digital World

Exam Code: E1

Exam Name: Managing Finance in a Digital World

Updated: Sep 18, 2026

Q & A: 335 Questions and Answers

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CIMA E1 Exam Syllabus Topics:

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

CIMA Managing Finance in a Digital World Sample Questions:

Question #1

Which of the following do working capital reports include?

  • A. Budgets
  • B. Cash reports
  • C. Performance reports
  • D. Cost of sales
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #2

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. Analysing
  • B. Acumen
  • C. Applying
  • D. Assembling
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #3

Material requirements planning (MRP I) and manufacturing resource planning (MRP II) are computerised systems used for planning the requirements for raw materials, work-in-progress and finished items and integrating with other production processes. These systems enable strong relationships to be forged with suppliers as orders can be placed with suppliers in good time to fulfill customer requirements and expectations, as well as other processes related to materials planning. Which of the following specifically can MRP I and MRP II NOT assist with?

  • A. Decision support planning
  • B. Equipment utilisation planning
  • C. Financial requirements planning
  • D. Labour schedule planning
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #4

Which of the following is a potential advantage of outsourcing?

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

Correct Answer: B  🗳️

Question #5

Barry has heard that the government is planning to tighten environmental regulations. He doesn't like the sound of this, as even though some businesses won't be affected that much, he will have to end up paying a lot more to run his business.
Which of the following options would be most effective in preventing the government from imposing such regulation?
Select ALL that apply.

  • A. Try and set up meetings with high-ranking members of the government to persuade them to not impose the new regulation.
  • B. Make a large donation to the the main opposition party in the hope they'll put pressure on the governing party to not impose the new regulation.
  • C. Tell a member of the governing party that he has some unscrupulous information about the party that he'll leak to the press if they go ahead with their plans to impose new regulation.
  • D. Make a large donation to the party in power in the hope that they'll abandon their plans to impose new regulation.
Reveal Solution  Discussion  0

Correct Answer: A,D  🗳️

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