CIMA Fundamentals of Financial Accounting : BA3

BA3 Exam Simulator
  • Exam Code: BA3
  • Exam Name: Fundamentals of Financial Accounting
  • Updated: Sep 14, 2026
  • Q & A: 395 Questions and Answers

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CIMA BA3 exam simulator

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CIMA BA3 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Analysis of Financial Statements10%- Limitations of financial statements
- Interpretation using accounting ratios
- Liquidity, profitability and solvency analysis
Topic 2: Recording Accounting Transactions50%- Reconciliations (bank, receivables, payables)
- Sources of records and books of prime entry
- Correction of errors and control accounts
- Double-entry bookkeeping and ledger accounts
- Accounting for assets, liabilities, equity and expenses
Topic 3: Accounting Principles, Concepts and Regulations10%- Elements of financial statements
- Accounting standards and principles
- Conceptual and regulatory framework
- Nature and objective of financial accounting
Topic 4: Preparation of Accounts for Single Entities30%- Adjusting entries and trial balance
- Preparation of income statement
- Preparation of simple cash flow statement
- Preparation of statement of financial position
- Manufacturing and inventory accounting

CIMA Fundamentals of Financial Accounting Sample Questions:

Question #1

One of the main responsibilities of internal auditors is to check the operational systems within their organization to establish whether the system's internal controls are sufficient and in full operation.
Which THREE of the following are examples of internal controls?

  • A. Authorization and approval
  • B. Filing
  • C. Accounting codes
  • D. Segregation of duties
  • E. Documentation
  • F. Physical
Reveal Solution  Discussion  0

Correct Answer: A,D,F  🗳️

Question #2

Refer to the Exhibit.

Berber Limited is preparing its year-end accounts and is reviewing the method used to estimate the allowance for receivables.
An aged receivables schedule shows the following position:
The company believes that the previous percentages used were not prudent enough and it has decided to increase the percentages on 2-3 months debt to 10% and on 3 months plus debt to 50%. The current allowance for receivables is $1,500.
What would be the effect on the income statement of the change in accounting policy

  • A. Increase in profit of $1,080
  • B. Reduction in profit of $900
  • C. Reduction in profit of $1,080
  • D. Reduction in profit of $2,580
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #3

Refer to the Exhibit.

A company had previously written off one of their receivables that had been declared bankrupt. The administrators of the bankruptcy have now sent a cheque to the company for the full amount originally outstanding. The company now needs to record this receipt.
Which of the following is the correct double entry?

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

Correct Answer: D  🗳️

Question #4

LMN's totals for its sales day book and its cash receipts book for the month ended 31 January 20X6 are as follows

What is the total value for sales that LMN will post to the sales account in the nominal ledger for January
20X6?

  • A. $45,000
  • B. $51,000
  • C. $30,000
  • D. $36,000
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #5

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?

  • A. Closing inventory is understated.
  • B. Gross profit is overstated
  • C. Purchases are overstated
  • D. Cost of sales are understated
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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