CIMA Fundamentals of Financial Accounting : BA3

  • Exam Code: BA3
  • Exam Name: Fundamentals of Financial Accounting
  • Updated: Oct 07, 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:

Question #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
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #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

Reveal Solution  Discussion  0

Correct Answer:

$100000

Question #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
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #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
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #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
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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