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CIMA BA3 - Fundamentals of Financial Accounting BA3 - Fundamentals of Financial Accounting Dumps in PDF

Free CIMA BA3 - Fundamentals of Financial Accounting Real Questions (page: 5)

Page 5 of 80 BA3 - Fundamentals of Financial Accounting PDF — 393 Questions

QUESTION: 21

On 31 December 20X6 GHI makes a bonus issue of 50,000 shares On this dale the nominal value of the shares is $1 and the market value is $3 GHI has a share premium account with a substantial credit balance. The share capital account is credited correctly in the nominal ledger. Which of the following statements is TRUE?

The bonus issue is valued at $3 per share and the debit entry is to the cash account
The bonus issue is valued at $1 per share and the debit entry is to the share premium account
The bonus issue is valued at $1 per share and the debit entry is to the cash account
The bonus issue is valued at $3 per share and the debit entry is to the share premium account

Answer(s): B

Reveal Solution Next Question

QUESTION: 22

Mr UY has just had property P re-valued. Mr UY originally purchased property P for $560,000. It is now worth $780,000.

Which ONE of the following shows how this transaction should be recorded in Mr UY's property account?

$220,000 credit
$220,000 debit
$780,000 debit
$780,000 credit

Answer(s): B

Reveal Solution Next Question

QUESTION: 23

IAS 2 Inventories does not permit the use of the last in. first out (LIFO) method of valuing inventory In a time of rising prices, which of the following is a reason for this?

Purchases are overstated
Closing inventory is understated.
Cost of sales are understated
Gross profit is overstated

Answer(s): B

Reveal Solution Next Question

QUESTION: 24

CORRECT TEXT

Refer to the Exhibit.

A company has the following transactions for an accounting period:

Closing inventory at the end of the period was $3,200 and gross profit was $16,400.

The opening inventory was therefore

See Explanation section for answer.

Answer(s): A

Explanation:

CORRECT TEXT IS: $5099

Reveal Solution Next Question

QUESTION: 25

Refer to the exhibit.

Both internal and external audits can be performed on the financial statements of a company. The results of the audits have different purposes and different reporting lines.

Which of the following combinations is correct?

A
B
C
D

Answer(s): C

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