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CIMA BA3 Sample Question Answers

Question # 1

Entity HJ is a small business. In the period. Entity Hj earned revenue of £24,300, had opening inventories of £1,500 and closing inventories of £8,000. Purchases came to £13,200.What was Entity Hj's gross profit or loss for this period?

A. £17,600 profit
B. £6,700 loss
C. £17,600 loss
D. £6,700 profit
E. £31,000 profit

Question # 2

An accountant is taking on financial accounting responsibilities for company PQ. Which TWO of the following are NOT true of financial accounting?

A. It's purpose is to provide financial information to an external source
B. It's purpose is to provide information for internal use
C. Performed without adherence to standard accounting rules
D. Performed in accordance with legal requirements

Question # 3

Company P are looking to create a balance sheet. Which of the following should be included in this document?

A. Company P's current assets
B. Company P's revenue for the period
C. Company P's cash usage for the period
D. Company P's liabilities
E. Company P's investing activities

Question # 4

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

A. The assets, equity and liabilities of a business
B. The revenue and expenses of a business over a period of time
C. The cash usage of a business over a period of time
D. Notes to go with the statements that explain the practices used

Question # 5

Store Y believe customer XF will not be able to pay his £300 debt. Which ONE of the following day books should this 'bad debt' be recorded in?

A. Returns inwards daybook
B. Sales daybook
C. journal 
D. Cash book 
E. Petty cash book