cima cimapra17 ba3 1 practice test

BA3 - Fundamentals of Financial Accounting

Last exam update: Nov 18 ,2025
Page 1 out of 27. Viewing questions 1-15 out of 393

Question 1

Store Y believe customer XF will not be able to pay his £300 debt. Which ONE of the following day
books should this 'bad debt' be recorded in?

  • A. Returns inwards daybook
  • B. Sales daybook
  • C. journal
  • D. Cash book
  • E. Petty cash book
Mark Question:
Answer:

C

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Question 2

Which ONE of the following does the Statement of Cash Flows show:

  • A. The assets, equity and liabilities of a business
  • B. The revenue and expenses of a business over a period of time
  • C. The cash usage of a business over a period of time
  • D. Notes to go with the statements that explain the practices used
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Answer:

C

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Question 3

Company P are looking to create a balance sheet. Which of the following should be included in this
document?

  • A. Company P's current assets
  • B. Company P's revenue for the period
  • C. Company P's cash usage for the period
  • D. Company P's liabilities
  • E. Company P's investing activities
Mark Question:
Answer:

A, D

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Question 4

An accountant is taking on financial accounting responsibilities for company PQ. Which TWO of the
following are NOT true of financial accounting?

  • A. It's purpose is to provide financial information to an external source
  • B. It's purpose is to provide information for internal use
  • C. Performed without adherence to standard accounting rules
  • D. Performed in accordance with legal requirements
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Answer:

B, C

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Question 5

Accountant P debited wages with £1,000 instead of £1,500, but credited sales with £1,500 instead of
£2,000.
Which of the following kind of bookkeeping mistakes is this?

  • A. Error of original entry
  • B. Compensation of errors
  • C. Reversal of entries
  • D. Error of principle
Mark Question:
Answer:

B

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Question 6

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. £17,600 profit
  • B. £6,700 loss
  • C. £17,600 loss
  • D. £6,700 profit
  • E. £31,000 profit
Mark Question:
Answer:

A

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Question 7

Entity V has a cost of sales of £23,850 for last year. Entity V's opening inventories for the year were
£15,800, and its closing inventories were £3,570. Entity V had a gross profit margin of 240% for last
year.
What was Entity V's inventories turnover figure to the nearest whole number for last year?

  • A. 2
  • C. 4
  • D. 3
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Answer:

A

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Question 8

Select the THREE INCORRECT statements from the following list of statements about memorandum
accounts:

  • A. A memorandum ledger is an account that is not part of the bookkeeping system as a whole
  • B. All transactions in a memorandum account have to be balanced with a corresponding entry in the nominal ledger
  • C. A memorandum account is part of the nominal ledger
  • D. A memorandum account is a daybook
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Answer:

B, C, D

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Question 9

The concept of stewardship refers to which ONE of the following?

  • A. An accountant's responsibility to remain optimistic in the presenting financial information
  • B. An accountant's responsibility to properly look after and present financial information
  • C. An accountant's responsibility to properly advise management on financial information
  • D. An accountant's responsibility to make sure all financial information is correct
Mark Question:
Answer:

B

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Question 10

JW's debits total £10,502 for this period. JW's credits total £8,940.
What amount does JW's accountant need to include in the company's suspense account to make the
transactions balance?

  • A. £1,562 CR
  • B. £1,562 DR
  • C. £10,502 CR
  • D. £8,940 DR
Mark Question:
Answer:

A

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Question 11

MHJ purchased an asset for £53,500, which incurred a delivery charge of £20,000. MHJ decided to
set a depreciation rate of 15% per annum for the asset.
In its second year, the asset is re-valued at 180% of the net carrying value of the previous year.
What will be the asset's net carrying amount by the end of its second year?

  • A. £7 72,455.00
  • B. £95,586.75
  • C. £53,101.20
  • D. £81,248.74
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Answer:

B

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Question 12

Strategic management deals with which ONE of the following;

  • A. Long-term plans for the business
  • B. Short-term plans for the business such as meeting targets
  • C. Day-to-day running of the business
Mark Question:
Answer:

A

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Question 13

Which TWO of the following are features of a private limited company?

  • A. Listed on the stock exchange
  • B. Usually a small number of owners
  • C. Usually a large number of owners
  • D. Recognised as a 'person' in the eyes of the law
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Answer:

B, D

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Question 14

Which of the following are examples of indirect costs for a chocolate manufacturing business?

  • A. Factory rent
  • B. Factory insurance
  • C. Factory supervisor wages
  • D. Purchase of milk
  • E. Purchase of cocoa
Mark Question:
Answer:

A, B, C

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Question 15

Which THREE of the following are subsidiary bodies of the IFRS Foundation?

  • A. International Accounting Standards Board
  • B. IFRS Advisory Council
  • C. International Advisory Committee
  • D. IFRS Interpretations Committee
  • E. International Advisory Standards Board
  • F. Advisory Interpretations Committee
Mark Question:
Answer:

A, B, D

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