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CIMA BA3 Exam
Fundamentals of Financial Accounting (Page 2 )

Updated On: 1-Feb-2026
Page 2 of 80
PDF with 393 Questions

Refer to the Exhibit.



The following information relates to a business at its year end:

The prime cost of goods manufactured during the year is:

  1. $5,550,000
  2. $8,150,000
  3. $8,350,000
  4. $8,800,000

Answer(s): C



Refer to the Exhibit.



Accounting information is required for a wide range of users both internal and external. Each user has a different need for the information.

Which of the following is the correct combination of user and need?

  1. A
  2. B
  3. C
  4. D

Answer(s): C



Which one of the following internal controls is designed to prevent errors and fraud?

  1. Confirmation of payables balances with suppliers.
  2. Requiring cheques over a certain amount to be signed by two signatories.
  3. Bank reconciliations.
  4. External audit.

Answer(s): B



XYZ's computerized accounting system automatically updates the non-current asset register when additions to property, plant and equipment are made A machine costing $120,000, with a useful life of five years and an estimated residual value of $12,000 is acquired at the year end.

Which of the following statements is correct in relation to the recording of this asset in the non-current asset register?

  1. The journal entry to record the cost is Dr Asset $120,000 and Cr Bank $120,000 The five year useful life is recorded
  2. There is no journal entry but the cost of $120,000, the five year useful life and estimated residual value of $12 000 are recorded
  3. There is no journal entry but the cost of $120,000 and the five year useful life are recorded
  4. The journal entry to record the cost is Dr Asset $120,000 and Cr Bank $120,000 The five year useful life and estimated residual value of $12,000 are recorded

Answer(s): B



A company has receivables of $60,000, which represents 60 payables days, and payables of $45,000, which represents 45 payables days.

What would be the effect on cash, if receivable days and payables days were reduced to 55 days and 40 days respectively?

  1. An increase of $10,000
  2. A reduction of $10,000
  3. An increase of $5,000
  4. No effect

Answer(s): D



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