CIMA CIMAPRA17-BA3-1 Exam Practice Test Instant Access

Question 1

A company has a debt/equity ratio of 50%. If the company's total equity is $750,000, what is the gearing ratio for the company?

A33.33%

B200%

C50%

DImpossible to tell from information provided.

Answer : A

Question 2

Accounting codes have proven to be very useful when recording business transactions.

Which THREE of the following does a coding system help to do?

AReduce the number of transactions recorded

BImprove the quality of reports

CReduce time taken to analyze transaction

DTake away the need for books of prime entry

ECombine roles for the receivables and payables ledger

FExtract balances for suppliers and customers

Answer : B, C, F

Question 3

Which of the following would be a role of the financial accountant?

AMeeting management reporting requirements

BMonitoring actual results to expected results

CMeeting external reporting requirements

DProducing budgets for the future

Answer : C

Question 4

Refer to the Exhibit.

You are given the following information:

What did sales on credit amount to during the year?

A$324,000

B$344,000

C$316,000

D$336,000

Answer : C

Question 5

MHJ purchased an asset for 53,500, which incurred a delivery charge of 20,000. MHJ decided to set a depreciation rate of 15% per annum for the asset.

In its second year, the asset is re-valued at 180% of the net carrying value of the previous year.

What will be the asset's net carrying amount by the end of its second year?

A7 72,455.00

B95,586.75

C53,101.20

D81,248.74

Answer : B

Question 6

Where a transaction is credited to the correct ledger account but debited to the purchases account instead of the fixed asset account, the error is known as an error of:

AOmission

BCommission

CPrinciple

DOriginal entry

Answer : C

Question 7

Which ONE of the following statements is true?

AIt is the responsibility of the internal auditors to detect fraud

BIt is the responsibility of the external auditors to detect fraud

CIt is the responsibility of the management to detect fraud

DIt is the responsibility of the shareholders to detect fraud

Answer : A

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