Managing Finance in a Digital World (E1)
150 questions mapped to the current AICPA & CIMA Operational Level blueprint (2026/27). Covers the finance function in a digital world, technology and information systems, data and analytics, finance operations, and ethics and governance. Switch to Exam Sim mode for a timed CIMA E1 mock exam: 60 questions, 90 minutes.
→ E1 Common Mistakes & Exam Technique: the errors that catch E1 students out, and how to avoid them.
The E1 exam format
| Format | Computer-based objective test. All questions are compulsory. |
|---|---|
| Length | 90 minutes, 60 questions. |
| Scoring | Reported as a scaled score from 0 to 150. Questions are weighted by difficulty, so the scaled score is not a straight percentage of questions answered correctly. |
| Pass mark | 100 out of 150. |
| Case Study | Separate from this exam. The Operational Case Study is sat after the three operational-level objective tests and has its own pass mark of 80 out of 150. |
Always check the current exam format on the AICPA & CIMA website before you sit.
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Sample E1 questions
Three questions from this bank, each with its answer and worked explanation. The quiz above draws from all 150.
Which of the following is a key difference between financial accounting and management accounting?
- Management accounts are always audited; financial accounts are not
- Financial accounting reports externally under regulation; management accounting serves internal users freely
- Management accounting is concerned only with historical costs, never forward-looking figures
- Financial accounting is only prepared by accountants, while management accounting can be prepared by anyone
Show answer and explanation
Answer: B. Financial accounting is primarily focused on reporting historical information to external users (shareholders, lenders, regulators) and must comply with applicable standards and legal requirements. Management accounting serves internal managers, is forward-looking as well as historical, and is not constrained by external reporting rules — so it can take any form useful to the organisation. Neither the audit requirement nor who prepares the accounts is the defining difference.
A finance team that accesses its accounting software and stores financial data on remote servers maintained by a third-party provider, accessible via the internet, is using:
- On-premise software
- A local area network
- Cloud computing
- A legacy system
Show answer and explanation
Answer: C. Cloud computing delivers computing services — including software, storage and processing — over the internet via remote servers maintained by the provider, rather than on local hardware owned by the organisation. On-premise software runs on the organisation's own servers, a local area network connects devices within one location, and a legacy system is outdated software not necessarily related to how it is hosted. Cloud adoption has increased flexibility, reduced IT infrastructure costs and enabled access from anywhere.
The term 'big data' is often described using four characteristics: Volume, Velocity, Variety and Veracity. Which of the following correctly describes 'Velocity' in this context?
- The sheer quantity of data being generated
- The different formats and types of data (structured, unstructured, semi-structured)
- The speed at which data is generated and must be processed
- The accuracy and trustworthiness of the data
Show answer and explanation
Answer: C. Velocity refers to the speed at which data is created, collected and needs to be analysed — for example, real-time data from social media, sensors or financial markets. Volume is the sheer quantity of data, Variety is the range of different data types and formats, and Veracity is the degree to which data is accurate and trustworthy. Understanding the four Vs helps organisations assess whether they need specialised tools beyond traditional databases to process and use data effectively.
About this question bank
150 questions across 5 syllabus sections, each mapped to a reference in the official CIMA syllabus for E1 and each with a worked explanation. All 150 are multiple choice.
- Written to CIMA's 2019 Professional Qualification syllabus.
- Spotted a mistake? Report it and it will be corrected.
| Syllabus section | Questions |
|---|---|
| A: Finance Function | 30 |
| B: Technology | 30 |
| C: Data & Analytics | 30 |
| D: Finance Operations | 30 |
| E: Ethics & Governance | 30 |