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CIMA BA3 Exam Syllabus Topics:

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

CIMA Fundamentals of Financial Accounting Sample Questions:

1. The phrase 'net book value', when applied to the statement of financial position figure for non-current assets, indicates that the figure represents:

A) The current market value of the assets, less accumulated depreciation
B) The replacement cost of the assets
C) The current market value of the assets
D) The original cost or valuation of the assets, less accumulated depreciation


2. The purpose of the external audit is the examination of, and expression of opinion on the financial statements of an entity.
What is the purpose of internal audits?

A) To confirm balances presented in the financial statements
B) To prepare for external audits
C) To create fear
D) To assist employees of the organization in effective discharge of their responsibilities


3. FGH has extracted its trial balance from its nominal ledger for the year ended 31 March 20X6 The items below have a value greater than SNil Which are debit and which are credit balances?


4. Refer to the Exhibit.

A business has three non-current assets.
(i) Asset 1 will be used to manufacture components over a 4 year period, after which it will be scrapped; the total contract is for 1 million components, to be produced in different quantities each year.
(ii) Asset 2 is a motor car for a director; it is expected to be kept for 3 years, and will travel 20,000 miles each year.
(iii) Asset 3 is a mobile truck used for transporting goods around the factory; it is expected to be kept for 20 years.
Which one of the following combinations of depreciation methods, would be most reasonable for the above three assets?
The answer is:

A) Option C
B) Option B
C) Option D
D) Option A


5. Refer to the Exhibit.

Which of the following would be shown in the trial balance for the bank ledger account?

A) $20 Debit
B) $1,070 Credit
C) $20 Credit
D) $1,070 Debit


Solutions:

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

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