CIMA Fundamentals of Financial Accounting : BA3

  • Exam Code: BA3
  • Exam Name: Fundamentals of Financial Accounting
  • Updated: Nov 08, 2026     Q & A: 395 Questions and Answers

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CIMA BA3 Exam Syllabus Topics:

SectionObjectives
Topic 1: Recording Financial Transactions- Control accounts and reconciliations
- Ledger accounts and trial balance preparation
Topic 2: Financial Statements Preparation- Income statement and statement of financial position
- Accruals and prepayments adjustments
Topic 3: Accounting Fundamentals and Principles- Double-entry bookkeeping system
- Basic accounting concepts and principles
Topic 4: Accounting Adjustments and Controls- Errors and suspense accounts
- Non-current assets and depreciation
- Inventory valuation and adjustments

CIMA Fundamentals of Financial Accounting Sample Questions:

Question #1

Refer to the Exhibit.

A company operates an AVCO system of inventory. Opening inventory at the beginning of the period was 400 units @ $6.50 per unit.
During the period, the following purchases and issues were recorded:
The amount charged to the company's income statement in the period is

Reveal Solution  Discussion  0

Correct Answer:

$2932

Question #2

It underpins all accounting standards and provides the platform from which all future standards will be developed.
Which ONE of the following is described above?

  • A. The European Union
  • B. The Framework
  • C. The International Financial Reporting Interpretation Committee
  • D. The Companies Act
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #3

Refer to the Exhibit.

The Financial Accountant for a company is preparing the monthly bank reconciliation and has extracted the following information:
The correct cash book balance at the month end will be:

  • A. $42,870
  • B. $41,960
  • C. $29,140
  • D. $44,610
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #4

A company which is VAT-registered receives an invoice for goods purchased for resale totaling $2,585 from a supplier that is not VAT-registered. VAT is at the rate of 17.5%.
The correct entry to record the invoice is:
A)

B)

C)

D)

  • A. Exhibit B
  • B. Exhibit A
  • C. Exhibit D
  • D. Exhibit C
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

Which one of the following is unlikely to be identified by the ratio analysis of a company's financial statements?

  • A. Effective use of assets
  • B. Significant capital commitments
  • C. Excessive debt
  • D. Poor working capital management
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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