Cisco
CompTIA
ISC
EC-Council
EXIN
Fortinet
ITIL
Juniper
Microsoft
VMware
Avaya
SAP
Google
NVIDIA
Salesforce
Amazon
Palo Alto Networks
ISC2
Splunk
ServiceNow
All Vendors
  2. Home
  3. Exams
  4. CIMA
  5. BA3

CIMA BA3 Exam Questions
Fundamentals of Financial Accounting (Page 33 )

Updated On: 6-Apr-2026
Page 16 of 80
PDF with 393 Questions

Cost of goods sold for a manufacturing company is the total of

  1. prime costs + production overheads + opening work in progress - closing work in progress + opening inventories of finished goods - closing inventories of finished goods
  2. prime costs + production overheads + opening inventories of raw materials - closing inventories of raw materials + opening work in progress - closing work in progress
  3. prime costs + production overheads - opening work in progress + closing work in progress - opening inventories of finished goods + closing inventories of finished goods
  4. prime costs + production overheads + opening inventories of raw materials - closing inventories of raw materials + opening work in progress - closing work in progress + opening inventories of finished goods - closing inventories of finished goods

Answer(s): A



CORRECT TEXT

Refer to the Exhibit.



A company operates an AVCO system of inventory. Opening inventory at the beginning of the period was 400 units @ $6.50 per unit.

During the period, the following purchases and issues were recorded:
The amount charged to the company's income statement in the period is

  1. See Explanation section for answer.

Answer(s): A

Explanation:

CORRECT TEXT IS: $2932



Refer to the Exhibit.



John, an employee of Kelt Ltd, earns gross wages for a week of $425.76.

Income tax is deducted at a rate of 25% on all earnings in excess of $85.00 per week and he is also liable to pay National Insurance contributions of 9% of his total earnings. Employers national insurance contributions are at a rate of 10.5%.

What are the correct ledger entries in the accounts of Kelt Ltd?

The answer is:

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

Answer(s): A



DEF prepares its financial statements to 30 September each year On 1 March 20X5 DEF acquires an office and immediately rents it to a tenant charging $2,400 a quarter payable in advance.

The tenant pays $2,400 on each of the following days 1 March 20X5, 6 June 20X5, 4 September 20X5 and 1 December 20X5.

What is the liability reported in the statement of financial position relating to the rent at 30 September 20X5?

  1. $7,200
  2. $1,600
  3. $4,000
  4. $5,600

Answer(s): D



Before lending to an entity, which TWO of the following pieces of information would a potential lender want to consider?

  1. Past tax payments made by the entity
  2. Social policies of the entity
  3. Dividend policy of the entity
  4. Ability of the entity to meet interest payments
  5. Long term business plans of the entity

Answer(s): D,E



Viewing page 33 of 80
Viewing questions 161 - 165 out of 393 questions



Post your Comments and Discuss CIMA BA3 exam dumps with other Community members:

BA3 Exam Discussions & Posts

AI Tutor 👋 I’m here to help!