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CIMA BA3 Exam Syllabus Topics:

CIMA Fundamentals of Financial Accounting Sample Questions:

1. Refer to the Exhibit.

The purchase ledger control account shows a balance of £324,564, while the individual customer account balances total £328,234.
Which of the following is a possible explanation for the difference between the two?

A) and (iii) only
B) and (iv) only
C) and (iv) only
D) and (iii) only

2. Financial statements should present fairly the financial position, financial performance and cash flows of an entity. In virtually all circumstances, a fair presentation is achieved by..........
Which of the following?

A) Ensuring all transactions are recorded
B) Compliance with applicable IFRSs
C) Performing regular reconciliations
D) Employing a qualified accountant

3. Where a transaction is entered into the correct ledger accounts, but the wrong amount is used, the error is known as an error of

A) Original entry
B) Principle
C) Omission
D) Commission

4. Entity HJ is a small business. In the period. Entity Hj earned revenue of £24,300, had opening inventories of
£1,500 and closing inventories of £8,000. Purchases came to £13,200.
What was Entity Hj's gross profit or loss for this period?

A) £31,000 profit
B) £6,700 loss
C) £6,700 profit
D) £17,600 profit
E) £17,600 loss

5. Which one of the following is an example of where the accrual or matching convention should be applied?

A) Gas consumed last quarter and paid for this quarter.
B) A company's machinery which is very specialized and would only have a small resale value if the company goes into liquidation.
C) Non-current assets originally costing $40,000, which if purchased today would cost $45,000.
D) A customer who is in financial difficulty and owes the company $8,000.

Solutions: