CIMA CIMAPRA17-BA3-1 Exam Practice Test Instant Access

Question 1

Which one of the following is unlikely to be identified by the ratio analysis of a company's financial statements?

APoor working capital management

BExcessive debt

CSignificant capital commitments

DEffective use of assets

Answer : C

Question 2

In a statement of cash flows, which one of the following would not be found under the section "cash flows from investing activities"?

APurchases of non-current activities

BInterest received

CDividend received

DDividend paid

Answer : D

Question 3

Which of the following statements is NOT correct?

AA receipts and payments account is the equivalent of an income statement.

BA receipts and payments account is the equivalent of a cash book summary.

CA receipts and payments account does not include depreciation of non-current assets.

DAn income and expenditure account is the equivalent of an income statement.

Answer : A

Question 4

The Framework is described as a conceptual framework when used in the creation of new accounting standards.

Which ONE of the following describes the approach of the Framework?

ARules based

BPrinciples based

CStatutory

DRegulatory

Answer : B

Question 5

Which THREE of the following are characteristics of financial accounting?

ARecords daily transactions

BMonitors actual results to expected results

CMeets external reporting requirements

DReports historic transactions

EMeets management reporting needs

FIs forward looking

Answer : A, C, D

Question 6

Refer to the exhibit.

The trial balance of Monchu Partnership, as at 30 June 2006, has a suspense account. Subsequent investigations revealed that:

(1) A payment of 352 to Mr. Tan was posted as 325.

(2) A remittance of 450 received from Arumugam was credited to Armits accounts.

(3) Salaries of 12000 have not been posted from the cash book.

Monchu suggested the following adjustments:

The appropriate journal entries are:

A(a), (c) and (e) only

B(b), (d) and (f) only

C(b) and (f) only

D(b), (e) and (f) only

Answer : C

Question 7

Which ONE of the following does not apply to the preparation of management accounts?

APrepared annually, summarizing financial performance

BPrepared frequently throughout the year

CPrepared mainly for internal users of accounting information

DPrepared to show the detailed costs of manufacturing and trading

Answer : A

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