CIMA BA3 - Fundamentals of Financial Accounting CIMAPRA17-BA3-1 Exam Practice Test

An invoice for electricity has been debited to the supplier's account and credited to the electricity account. This would result in:

A company's financial statements show a gross profit of $15 million. A major error in the inventory value system has been discovered resulting in an overstatement on opening inventory of $1.2 million and an understatement in closing inventory of $1.5 million.

What is the correct gross profit figure for the period?

Refer to the exhibit.

ABC has the equity balances at the end of year 1.

During year 2 ABC issues 100,000 new shares at a price of $1.10

What is the balance on share premium at the end of year 2?

Non-current assets can be divided between intangible and tangible assets.

Which THREE of the following are intangible assets?

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?

The total of the debit column of a trial balance is $800 bigger than the credit column.

Which of the following is the entry recorded in the suspense account?

Refer to the Exhibit.

A business which is not VAT registered, purchased stationery items on credit costing 500 excluding VAT. The rate of VAT on the goods was 17.5%.

What are the correct ledger entries?

The answer is: