CIMA Fundamentals of Financial Accounting : BA3

  • Exam Code: BA3
  • Exam Name: Fundamentals of Financial Accounting
  • Updated: Sep 13, 2026
  • Q & A: 395 Questions and Answers

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CIMA BA3 Exam Syllabus Topics:

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

CIMA Fundamentals of Financial Accounting Sample Questions:

Question #1

On 31 December 20X6 GHI makes a bonus issue of 50,000 shares On this dale the nominal value of the shares is $1 and the market value is $3 GHI has a share premium account with a substantial credit balance. The share capital account is credited correctly in the nominal ledger. Which of the following statements is TRUE?

  • A. The bonus issue is valued at $1 per share and the debit entry is to the share premium account
  • B. The bonus issue is valued at $3 per share and the debit entry is to the share premium account
  • C. The bonus issue is valued at $1 per share and the debit entry is to the cash account
  • D. The bonus issue is valued at $3 per share and the debit entry is to the cash account
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

Refer to the exhibit.

Which three of the following would be classified as a revenue reserve?

  • A. A, B and C
  • B. D, E and F
  • C. A, C and F
  • D. B, D and E
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #3

A company has receivables of $60,000, which represents 60 payables days, and payables of $45,000, which represents 45 payables days.
What would be the effect on cash, if receivable days and payables days were reduced to 55 days and 40 days respectively?

  • A. An increase of $5,000
  • B. No effect
  • C. An increase of $10,000
  • D. A reduction of $10,000
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #4

The role of the internal auditors is primarily to:

  • A. Prepare the financial accounts
  • B. Support the work of the external auditors by carrying out specific checks on the accuracy of the accounting system
  • C. Report to shareholders on the accuracy of the accounting system
  • D. Reduce the fees charged by the external auditors by carrying out some of their duties at a lower cost, thereby improving profits
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

An organization's cash book has an opening balance in the bank column of $4,850 credit.
The following transactions then took place:
(a) Cash sales of $14,500, including VAT of $1,500.
(b) Receipts from customers of debts of $24,000.
(c) Payments to creditors of debts of $18,000, less 5% cash discount.
(d) Dishonored cheques from customers amounting to $2,500.
The resulting balance in the bank column of the cash book should be:

  • A. $12,550 debit
  • B. $14,050 debit
  • C. $23,750 credit
  • D. $19,050 credit
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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