[Jan 21, 2022] BA3 Exam Brain Dumps - Study Notes and Theory
Pass CIMA BA3 Test Practice Test Questions Exam Dumps
NEW QUESTION 24
Which ONE of the following is an asset?
- A. Sales tax exempt from an item
- B. Sales tax paid on an item
- C. Sales tax received from the sale of an item
Answer: B
NEW QUESTION 25
A club receives subscriptions during 2006 of £4600. Of these £500 related to subscriptions in respect of 2005 and £400 related to subscriptions in advance for 2007.
The accounts for 2005 included an accrual of £600 for subscriptions in arrears; the balance of £100 which has still not been received, should be written off.
The figure for subscriptions in the income and expenditure account for 2006 will be
Answer:
Explanation:
£3596
NEW QUESTION 26
Refer to the exhibit.
A suspense account shows a credit balance of $230 which has arisen because of the recording of a gas bill twice in the gas account.
In order to correct the error, which one of the following journal entries is required?
The correct journal entry is
- A. D
- B. B
- C. A
- D. C
Answer: D
NEW QUESTION 27
BCD has the following balances for the year ended 31 December 20X8:
What is the trade payables balance of BCD at 31 December 20X8? Give your answer to the nearest $"000.
Answer:
Explanation:
$380
NEW QUESTION 28
Accounting standards and company law both influence how assets and liabilities ate classified and presented in financial statements An amount owing at the year end, due for repayment more from one year from the date that the statement of financial position is being prepared, will be classified under which of the following headings?
- A. Current liability
- B. Non-current asset
- C. Non-current liability
- D. Capital
Answer: C
NEW QUESTION 29
W and Partners has an opening capital balance at 1 January of £14,640 credit.
During the period there was an increase in assets of £6,820 and an increase in liabilities of £5,400.
The balance on the capital account at the end of the period is:
- A. £13,220 credit
- B. £16,060 credit
- C. £1,420 credit
- D. £1,420 debit
Answer: B
NEW QUESTION 30
Company X wants to find the total of all the transactions from its sales account. Where should Company Xlook?
- A. Sales ledger
- B. Sales control account
- C. Memorandum account
Answer: B
NEW QUESTION 31
The financial accounts, as prepared by the directors of a company, are required to show a 'true and fair view'.
This means that:
- A. No errors were detected during the audit of the accounts
- B. The accounts are prepared in accordance with the Companies Act and comply with relevant reporting standards
- C. The accounts contain no fraudulent transactions
- D. The accounts are accurate
Answer: B
NEW QUESTION 32
A business had a balance at the bank of $1500 at the start of the month.
During the following month, it paid for materials of $1000, less trade discount of 20% and cash discount of 10%. It received a cheque from a trade receivable in respect of an invoice for $200, subject to cash discount of 5%.
The balance at the bank at the end of the month was
Give your answer to 2 decimal places.
Answer:
Explanation:
$969.90
NEW QUESTION 33
Which one of the following statements is true?
- A. External auditors are employed by the stakeholders
- B. Internal auditors are employed by the management
- C. External auditors are employed by the management
- D. Internal auditors are employed by the stakeholders
Answer: B
NEW QUESTION 34
Which of the following transactions would be classified as a revenue transaction?
- A. Purchase of plant and machinery
- B. Purchase of inventory for resale
- C. Issue of share capital
- D. Payments made to trade payables
Answer: B
NEW QUESTION 35
Which one of the following is an error of commission?
- A. A credit sale debited to the bank account and credited to the sales account
- B. The purchase of plant and machinery debited to the fixtures and fittings account and credited to the suppliers account
- C. An electricity bill debited and credited to the correct accounts but duplicated
- D. An invoice for £592 debited and credited to the correct accounts, but for £529
Answer: B
NEW QUESTION 36
Different users have different needs from financial information. One of which is to assess how effectively management is performing and how much profit will be available to be distributed.
Which of the following users will have this need for information?
- A. Shareholders
- B. Suppliers
- C. Managers
- D. Lenders
Answer: A
NEW QUESTION 37
ABC has the following summary of transactions for the quarter ended 30 June 20X9 ABC is registered for sales tax at 20%.
At the beginning of the quarter ABC owed $2,300 to the local tax authority.
What is the balance owing to the local tax authority at 30 June 20X97 Give your answer to the nearest dollar.
Answer:
Explanation:
$68400
NEW QUESTION 38
What will be the effect on the financial statements if the closing inventory figure is decreased?
- A. An increase in cost of sales, an increase in gross profit and a decrease in the inventory figure in the statement of financial position.
- B. An increase in cost of sales, a decrease in gross profit and a decrease in the inventory figure in the statement of financial position.
- C. A decrease in cost of sales, a decrease in gross profit and a decrease in the inventory figure in the statement of financial position.
- D. A decrease in cost of sales, an increase in gross profit and a decrease in the inventory figure in the statement of financial position.
Answer: B
NEW QUESTION 39
The IASB's Framework for the Preparation and Presentation of Financial Statements identifies four possible measurement bases for use in financial statements Which of the following are those bases?
- A. historical cost, resale value, realizable value , present value
- B. historical cost, current cost, realizable value, present value
- C. historical cost, modified historical cost, realizable value, current cost
- D. historical cost, modified historical cost, realizable value, present value
Answer: B
NEW QUESTION 40
Which of the following entries would result in the trial balance not agreeing?
(a) An invoice for £200 for electricity has been omitted from the ledgers (b) A payment received from a customer has been posted to the accounts twice (c) An invoice for repairs and maintenance has been charged to the non-current asset account (d) A payment made to suppliers had been recorded in the cash book but not recorded in the supplier's account
- A. (d) only
- B. (a) and (b) only
- C. (c) and (d) only
- D. All of the above - (a), (b), (c) and (d)
Answer: A
NEW QUESTION 41
Which of the following transactions would be classified as a capital transaction?
- A. Expenditure on heat and light
- B. Depreciation on plant and machinery
- C. Payment of dividends
- D. Repayment of bank loan
Answer: D
NEW QUESTION 42
Which one of the following best describes the purpose of an external audit of financial statements?
- A. The auditor advises on the use of International Financial Reporting Standards.
- B. The auditor expresses an opinion on the truth and fairness of the financial statements.
- C. The auditor checks the statements for evidence of fraud.
- D. The auditor expresses an opinion on corporate governance issues.
Answer: B
NEW QUESTION 43
A company that is VAT-registered has sales for the period of $245,000 (excluding VAT) and purchases for the period of $123,375 (including VAT). The opening balance on the VAT account was $18,000 credit. The VAT rate is 17.5%.
What will be the closing balance on the VAT account at the end of the period?
- A. $6,500 debit
- B. $36,375 credit
- C. $42,500 credit
- D. $375 debit
Answer: C
NEW QUESTION 44
The issue of a company's shares for more than their normal value results in the creation of a
- A. Suspense account.
- B. Share premium account.
- C. Goodwill account.
- D. General reserve.
Answer: B
NEW QUESTION 45
GH operates an imprest system for petty cash, maintaining a float of $250 The following petty cash book extract is available for a week in March 20X6:
How much does GH need to transfer from the bank account at the end of this week In order to maintain the imprest system?
- A. The float total of $250.
- B. The total of the float and total spend of $435
- C. The difference between the float and total spend of $65
- D. The total spend of $185
Answer: D
NEW QUESTION 46
An invoice for electricity has been debited to the supplier's account and credited to the electricity account. This would result in:
- A. An overstatement of profit and an overstatement of current liabilities
- B. An understatement of profit and an overstatement of current liabilities
- C. An overstatement of profit and an understatement of current liabilities
- D. An understatement of profit and an understatement of current liabilities
Answer: C
NEW QUESTION 47
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