CIMA BA3 Exam
Fundamentals of Financial Accounting (Page 8 )

Updated On: 1-Feb-2026

Jasper has an opening capital balance at 1 January of $84,650 credit. During the period there was an increase in assets of $16,890 and an increase in liabilities of $22,480.

The balance on the capital account at the end of the period is:

  1. $79,060 credit
  2. $5,590 credit
  3. $5,590 debit
  4. $90,240 credit

Answer(s): A



W and Partners has an opening capital balance at 1 January of $14,640 credit.

During the period there was an increase in assets of $6,820 and an increase in liabilities of $5,400.

The balance on the capital account at the end of the period is:

  1. $16,060 credit
  2. $1,420 credit
  3. $13,220 credit
  4. $1,420 debit

Answer(s): A



In the year ended 31 December 20X1, XYZ receives an email confirming that a major customer has gone into liquidation and will be unable to pay its suppliers.

Which of the following is the impact of adjusting for this event?

  1. Profits increase and allowance increases.
  2. Receivables decrease and allowance increases
  3. Receivables unchanged and profits decrease
  4. Receivables decrease and profits decrease

Answer(s): D



Which THREE of the below are possible reasons for an entity's capital amount to change?

  1. New or withdrawn capital
  2. Drawings
  3. Depreciation of non-current assets
  4. Net profit/loss

Answer(s): A,B,D



Where a transaction is credited to the correct ledger account but debited to the purchases account instead of the fixed asset account, the error is known as an error of:

  1. Omission
  2. Commission
  3. Principle
  4. Original entry

Answer(s): C



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