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CIMA BA3 Exam Syllabus Topics:

CIMA Fundamentals of Financial Accounting Sample Questions:

1. A company's payables days has reduced from 60 days to 55 days.
Which of the following could be a possible explanation for this?

A) Improved payment terms offered by supplier.
B) Cash flow problems.
C) Improved credit control.
D) Discounts offered by suppliers for early settlement.

2. A basic principle of accounting is that resources are normally stated in accounts at historical cost.
Which THREE of the following are alternative ways of measuring resources?

A) Replacement cost
B) Fair value
C) Value in use
D) Purchase price
E) Invoice value
F) Net book value

3. Which of the following transactions affects profit but does not affect cash?

A) Issue of share capital
B) Sales of goods on credit
C) Payments to trade payables
D) Purchase of non-current assets

4. 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) Compensation of errors
B) Reversal of entries
C) Error of original entry
D) Error of principle

5. Which ONE of the following organizations issues International Accounting Standards (IFRS's)?

A) Standards Advisory Council (SAC)
B) International Accounting Standards Board (IASB)
C) International Financial Reporting Interpretation Committee (IFRIC)
D) International Accounting Standards Committee Foundation (IASCF)

Solutions: