CIMA Fundamentals of Financial Accounting : BA3

  • Exam Code: BA3
  • Exam Name: Fundamentals of Financial Accounting
  • Updated: Jul 18, 2026
  • Q & A: 395 Questions and Answers

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CIMA BA3 Exam Syllabus Topics:

SectionObjectives
Recording Financial Transactions- Ledger accounts and trial balance preparation
- Control accounts and reconciliations
Accounting Fundamentals and Principles- Double-entry bookkeeping system
- Basic accounting concepts and principles
Accounting Adjustments and Controls- Errors and suspense accounts
- Non-current assets and depreciation
- Inventory valuation and adjustments
Financial Statements Preparation- Accruals and prepayments adjustments
- Income statement and statement of financial position

CIMA Fundamentals of Financial Accounting Sample Questions:

1. Which one of the following is not an example of an intangible asset?

A) Patents
B) Royalties
C) Research and Development costs
D) Trademarks


2. Refer to the exhibit.

A company has the following equity balances at the beginning of the year During the year the company made a rights issue of 1 for 5 at a price of $1.50 The balance of share premium after this issue is


3. Which ONE of the following do solvency ratios measure:

A) The earnings generated per £1 of capital
B) The use of assets
C) The ability of a company to pay their payables
D) The profitability of a company


4. Refer to the Exhibit.

Which of the following accounting entries are required to record a loss arising on disposal of a non-current asset?
The accounting entries required to record a loss arising on disposal of a non-current asset are

A) B
B) D
C) C
D) A


5. Financial statements should present fairly the financial position, financial performance and cash flows of an entity. In virtually all circumstances, a fair presentation is achieved by..........
Which of the following?

A) Performing regular reconciliations
B) Ensuring all transactions are recorded
C) Compliance with applicable IFRSs
D) Employing a qualified accountant


Solutions:

Question # 1
Answer: B
Question # 2
Answer: Only visible for members
Question # 3
Answer: C
Question # 4
Answer: C
Question # 5
Answer: C

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