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CIMA BA3 Exam Syllabus Topics:

CIMA Fundamentals of Financial Accounting Sample Questions:

1. Which ONE of the following do solvency ratios measure:

A) The ability of a company to pay their payables
B) The profitability of a company
C) The earnings generated per £1 of capital
D) The use of assets

2. 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) £10,502 CR
B) £1,562 CR
C) £8,940 DR
D) £1,562 DR

3. Refer to the Exhibit.

A company has the following transactions for an accounting period:
Closing inventory at the end of the period was $3,200 and gross profit was $16,400.
The opening inventory was therefore

4. Which one of the following is an error of principle?

A) The purchase of a non-current asset debited to the purchases account and credited to the payable's account
B) The payment of wages debited and credited to the correct accounts, but using the wrong amount
C) The purchase of a non-current asset credited to the asset at cost account and debited to the payable's account
D) A gas bill credited to the gas account and debited to the bank account

5. A company uses the straight line method of depreciation.
Which TWO of the following are a possible explanation for a profit on disposal?

A) The estimated residual value was higher than actual
B) The actual useful life was more than estimated
C) The actual useful life was less than estimated
D) The estimated residual value was lower than actual

Solutions: