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CIMA Fundamentals of Financial Accounting BA3 Dumps in PDF

Free CIMA BA3 Real Questions (page: 10)

BA3 PDF — 393 Questions

Which ONE of the following is a possible explanation for a debit balance on the purchase ledger account of a supplier?

(i) An invoice has been posted twice

(ii) A credit note has been posted twice

(iii) A payment has been recorded against the wrong supplier account

(iv) A payment has been posted twice

(v) A contra was posted to the supplier account but not the customer account
(vi) Goods returned had been posted to the wrong supplier account

  1. (i) and (ii) only
  2. (iii) and (iv) only
  3. (i), (ii) and (iv) only
  4. (ii), (iii) and (iv) only
  5. (i), (ii) and (v) only
  6. (iii), (iv) and (vi) only

Answer(s): D



Accounting standards are needed so that financial statements will fairly and consistently describe financial performance.

What are accounting standards an example of?

  1. Principles based accounting
  2. Cash accounting
  3. Cost accounting
  4. Rules based accounting

Answer(s): D



Which ONE of the following does the Statement of Cash Flows show:

  1. The assets, equity and liabilities of a business
  2. The revenue and expenses of a business over a period of time
  3. The cash usage of a business over a period of time
  4. Notes to go with the statements that explain the practices used

Answer(s): C



An invoice to Sammy has been entered in the sales day book as $85 instead of $58.

To correct the position, which of the following procedures should be adopted?

  1. Debit Receivables $27, Credit Sales $27 and increase the balance owing by Sammy
  2. Debit Receivables $27, Credit Sales $27 and decrease the balance owing by Sammy
  3. Debit Sales $27, Credit Receivables $27 and increase the balance owing by Sammy
  4. Debit Sales $27, Credit Receivables $27 and decrease the balance owing by Sammy

Answer(s): D



Under the normal convention of accounting, assets are shown in the balance sheet at:

  1. Their current market value
  2. Their cost value
  3. The current cost to the firm of replacing them
  4. Their economic value to the firm

Answer(s): B



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