CIMA Fundamentals of Financial Accounting BA3 Dumps in PDF

Free CIMA BA3 Real Questions (page: 5)

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?

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

Answer(s): B



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?

  1. $220,000 credit
  2. $220,000 debit
  3. $780,000 debit
  4. $780,000 credit

Answer(s): B



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?

  1. Purchases are overstated
  2. Closing inventory is understated.
  3. Cost of sales are understated
  4. Gross profit is overstated

Answer(s): B



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

  1. See Explanation section for answer.

Answer(s): A

Explanation:

CORRECT TEXT IS: $5099



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?

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

Answer(s): C



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