CIMA Fundamentals of Financial Accounting : BA3

  • Exam Code: CIMA
  • Exam Name: Fundamentals of Financial Accounting
  • Updated: Jun 19, 2026
  • Q & A: 395 Questions and Answers

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CIMA Fundamentals of Financial Accounting Sample Questions:

1. A company has profit before tax and dividends of £500000. The share capital consists of 1000000 ordinary shares of £1 each and 100000 10% preference shares of 50p each.
A 10p dividend was declared on ordinary shares.
Assuming there was no tax liability for the period, profit retained for the period was


2. Refer to the Exhibit.

Ax minster Limited is calculating its irrecoverable debt charge and allowance for receivables for inclusion in its year-end accounts. The current allowance for receivables is $28,600 and it is estimated that this needs to be raised to $30,400. There are also bad debts of $3,600 which should be written off.
Which is the correct entry to be made to the accounts to record these transactions?
The correct entry to be made to the accounts to record these transactions is:

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


3. "To assure shareholders that the stewardship of the organization was effectively carried out." What does this definition describe?

A) External audit
B) Internal audit
C) Preparation of financial statements
D) Reconciliation process


4. Refer to the exhibit.

Harvey commenced business with capital of $50,000. At the end of the first financial year, he has What was the profit for the period?

A) $7,000 loss
B) $23,000 loss
C) $23,000 profit
D) $7,000 profit


5. AB commenced trading on 1 January 20XS. introducing $50,000 cash and $15,000 of assets to the business.
The profit earned and retained in the business for the year ended 31 December 20X6 was $160,000. AB's closing capital at 31 December 20X5 was $190,000.
What is the value of AB's drawings for the year ending 31 December 20X5?

A) $95,000
B) $20,000
C) $35,000
D) $135,000


Solutions:

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

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