CIMA CIMAPRA17-BA3-1 Exam Questions Instant Access

Question 1

Accounting codes are often used within a business.

Which of the following would describe the reason for this?

ATo ensure all transaction are listed in a logical order

BTo ensure transactions are recorded in date order

CTo group like transactions to generate useful information

DTo group transactions on the same date

Answer : C

Question 2

Which THREE of the following are characteristics of management accounting?

AFocuses on departmental information

BMonitors actual results to expected results

CMeets external reporting requirements

DReports historic transactions

EUsed by tax authorities

FIs forward looking

Answer : A, B, F

Question 3

Comany D recently purchased an intangible asset from CompanyJFY, which was priced at 150,500, which Company D paid, along a goodwill amount that totalled 25% of the asking price.

Company D has estimated that the purchased entity will have a useful life of 35 years. Company D has decided to amortise the cost of the new asset using the straight line method.

What will the amortisation figure per annum be for Company D's new entity?

A5,375

B4,300

C1,075

D5,500

Answer : A

Question 4

Refer to the Exhibit.

Accounting information is required for a wide range of users both internal and external. Each user has a different need for the information.

Which of the following is the correct combination of user and need?

Answer : C

Question 5

Which of the following would require an adjustment to be made to the cash book?

(a) Unpresented cheques

(b) Receipts not yet credited by the bank

(d) Bank charges

A(a) and (b) only

B(b) and (c) only

C(c) and (d) only

D(d) only

Answer : C

Question 6

Which ONE of the following does the Statement of Cash Flows show:

AThe assets, equity and liabilities of a business

BThe revenue and expenses of a business over a period of time

CThe cash usage of a business over a period of time

DNotes to go with the statements that explain the practices used

Answer : C

Question 7

Refer to the exhibit.

A business has the following trading account for its most recent year:

What is its rate of inventory turnover for the year?

A4.9 times

B5.3 times

C7.5 times

D9 times

Answer : A

CIMA BA3 - Fundamentals of Financial Accounting CIMAPRA17-BA3-1 Exam Questions