CIMA Fundamentals of Financial Accounting : BA3

Exam Code: BA3

Exam Name: Fundamentals of Financial Accounting

Updated: Oct 30, 2026

Q & A: 395 Questions and Answers

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BA3 exam dumps

CIMA BA3 Exam Syllabus Topics:

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

CIMA Fundamentals of Financial Accounting Sample Questions:

Question #1

On 1 March, a company made a payment of $6,000, in respect of rent for the quarter 1 March - 31 May. The company's year end was 31 March.
What will be the amount of the prepayment shown in the accounts at the year end?

  • A. Nil
  • B. $6,000
  • C. $4,000
  • D. $2,000
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #2

Which one of the following attributes is the most important for any code to possess, in order to be of use in an accounting system?

  • A. Understandable
  • B. Concise
  • C. Unique
  • D. Secret
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #3

Which of the following is an example of where the materiality convention should be applied?

  • A. Sales to a customer in September, but for which the cash was not received until October.
  • B. Inventory of stationery items remaining at the year end.
  • C. A proposed change in the method of depreciation of non-current assets.
  • D. A two-year construction contract.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #4

Where a transaction is credited to the correct ledger account but debited to the purchases account instead of the fixed asset account, the error is known as an error of:

  • A. Commission
  • B. Omission
  • C. Original entry
  • D. Principle
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #5

Which FOUR of the following should be categorised as a DEBIT (DR) when filling out a T-account?

  • A. Increase in assets
  • B. Increase in drawings
  • C. Increase in income
  • D. Increase in expenses
  • E. Decrease in liabilities
  • F. Decrease in assets
  • G. Increase in liabilities
  • H. Increase in capital
Reveal Solution  Discussion  0

Correct Answer: A,B,D,E  🗳️

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