CIMA Fundamentals of Financial Accounting (BA3) Free Practice Test
Question 1
In internal auditing, detection of fraud is an important objective. The auditors will best be able to detect frauds if they are knowledgeable in the most common methods of fraud.
Which THREE of the following are common methods of fraud?
Which THREE of the following are common methods of fraud?
Correct Answer: A,B,D
Question 2
XYZ's computerized accounting system automatically updates the non-current asset register when additions to property, plant and equipment are made A machine costing $120,000, with a useful life of five years and an estimated residual value of $12,000 is acquired at the year end.
Which of the following statements is correct in relation to the recording of this asset in the non-current asset register?
Which of the following statements is correct in relation to the recording of this asset in the non-current asset register?
Correct Answer: D
Question 3
Refer to the exhibit.
A company has the following equity balances at the beginning of the year:
During the year the company issued 100,000 new shares at $1.20 each
What are the equity balances after this issue?
A company has the following equity balances at the beginning of the year:
During the year the company issued 100,000 new shares at $1.20 each
What are the equity balances after this issue?
Correct Answer: C
Question 4
Refer to the Exhibit.
A club receives the following fees in its first two years of operations:
Entrance fees are to be recognized over a period of 5 years while life membership fees are to be credited over a period of 10 years.
The total amount of fees which will be recognized in the income and expenditure account for each of the two years is:
A club receives the following fees in its first two years of operations:
Entrance fees are to be recognized over a period of 5 years while life membership fees are to be credited over a period of 10 years.
The total amount of fees which will be recognized in the income and expenditure account for each of the two years is:
Correct Answer: B
Question 5
The issue of a company's shares for more than their normal value results in the creation of a
Correct Answer: D
Question 6
Which of the following would be a role of the financial accountant?
Correct Answer: A
Question 7
Which of the following is not an external user of financial statements?
Correct Answer: B
Question 8
Company H receives a 10% discount on its order from supplier GD. Which ONE of the following does the discounted amount count as for Company H?
Correct Answer: B
Question 9
On 1 March, a company made a payment of $6,000, in respect of rent for the quarter 1 March - 31 May. The company's year end was 31 March.
What will be the amount of the prepayment shown in the accounts at the year end?
What will be the amount of the prepayment shown in the accounts at the year end?
Correct Answer: D
Question 10
Refer to the exhibit.
The following is an extract from the trial balance of a business for its most recent year:
Gross profit has already been calculated as being $75,000. Depreciation is to be provided at 25% on the reducing balance, and the allowance for receivables for doubtful debts is to be amended to 5% of receivables.
Using some or all of the above figures, the correct net profit is
The following is an extract from the trial balance of a business for its most recent year:
Gross profit has already been calculated as being $75,000. Depreciation is to be provided at 25% on the reducing balance, and the allowance for receivables for doubtful debts is to be amended to 5% of receivables.
Using some or all of the above figures, the correct net profit is
Correct Answer:
$29499
Question 11
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
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
Correct Answer:
£5099
Question 12
Which THREE of the following are improved by the use of accounting standards?
Correct Answer: B,C,D