CIMA BA3 : Fundamentals of Financial Accounting

  • Exam Code: BA3
  • Exam Name: Fundamentals of Financial Accounting
  • Updated: Jul 10, 2026
  • Q & A: 395 Questions and Answers

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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Which one of the following is an error of principle?

A) The purchase of a non-current asset debited to the purchases account and credited to the payable's account
B) The purchase of a non-current asset credited to the asset at cost account and debited to the payable's account
C) The payment of wages debited and credited to the correct accounts, but using the wrong amount
D) A gas bill credited to the gas account and debited to the bank account


2. A public limited company declares a 10% final dividend.
The nominal value of the shares is 50p and the shares are currently trading, in the stock market, at a price of £2.
A shareholder who purchased 1000 shares at a price of £1.00 per share, will receive a dividend of:
Give your answer to 2 decimal places.


3. 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) Year 1 - £27000 Year 2 - £45500
B) Year 1 - £27000 Year 2 - £44500
C) Year 1 - £36000 Year 2 - £49000
D) Year 1 - £27000 Year 2 - £38500


4. Which of the following transactions would be classified as a revenue transaction?

A) Purchase of inventory for resale
B) Issue of share capital
C) Purchase of plant and machinery
D) Payments made to trade payables


5. Company A has a receivables turnover ratio of six times, while Company B, which operates in the same market sector, has a receivables turnover ratio of five times.
This suggests that

A) Company A has a lower level of receivables than Company B and is, therefore, more efficient than Company B.
B) Company A has a lower level of receivables than Company B and is, therefore, less efficient than Company B.
C) Company A has a higher level of receivables than Company B and is, therefore, more efficient than Company B.
D) Company A has a higher level of receivables than Company B and is, therefore, less efficient than Company B.


Solutions:

Question # 1
Answer: A
Question # 2
Answer: Only visible for members
Question # 3
Answer: A
Question # 4
Answer: A
Question # 5
Answer: A

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