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CIMA BA3 Exam
Fundamentals of Financial Accounting (Page 5 )

Updated On: 1-Feb-2026
Page 5 of 80
PDF with 393 Questions

What will be the effect on the financial statements if the closing inventory figure is decreased?

  1. An increase in cost of sales, an increase in gross profit and a decrease in the inventory figure in the statement of financial position.
  2. A decrease in cost of sales, a decrease in gross profit and a decrease in the inventory figure in the statement of financial position.
  3. A decrease in cost of sales, an increase in gross profit and a decrease in the inventory figure in the statement of financial position.
  4. An increase in cost of sales, a decrease in gross profit and a decrease in the inventory figure in the statement of financial position.

Answer(s): D



Refer to the exhibit.


A company's gross profit margin has fallen from 40% to 38% in the last period.

Which three of the following would be possible explanations for this?

  1. A, B and C
  2. D, E and F
  3. B, C and F
  4. A, D and E

Answer(s): D



An asset may best be defined as:

  1. An obligation to transfer economic benefits as a result of past transactions or events
  2. A resource which may be used to derive income in the future
  3. A person or entity to whom money is owed by the business
  4. The amount of money invested in the business by the shareholders

Answer(s): B



HJK has maintained minimal accounting records during the year but has the following information available:



HJK charges a mark-up on all goods sold of 25%. What is HJK's gross profit for the year?

  1. $77,500
  2. $62,000
  3. $57,500
  4. $46,000

Answer(s): B



Comany D recently purchased an intangible asset from CompanyJFY, which was priced at $150,500, which Company D paid, along a goodwill amount that totalled 25% of the asking price.

Company D has estimated that the purchased entity will have a useful life of 35 years. Company D has decided to amortise the cost of the new asset using the straight line method.

What will the amortisation figure per annum be for Company D's new entity?

  1. $5,375
  2. $4,300
  3. $1,075
  4. $5,500

Answer(s): A



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