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Instant Download CIMA : BA3 Questions & Answers as PDF & Test Engine

BA3
  • Exam Code: BA3
  • Exam Name: Fundamentals of Financial Accounting
  • Updated: Jul 29, 2026
  • No. of Questions: 395 Questions and Answers
  • Download Limit: Unlimited
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CIMA BA3 Exam Syllabus Topics:

SectionObjectives
Topic 1: Accounting Fundamentals and Principles- Basic accounting concepts and principles
- Double-entry bookkeeping system
Topic 2: Recording Financial Transactions- Control accounts and reconciliations
- Ledger accounts and trial balance preparation
Topic 3: Accounting Adjustments and Controls- Errors and suspense accounts
- Inventory valuation and adjustments
- Non-current assets and depreciation
Topic 4: Financial Statements Preparation- Income statement and statement of financial position
- Accruals and prepayments adjustments

CIMA Fundamentals of Financial Accounting Sample Questions:

1. Which of the following is not a correct definition of the accounting equation?

A) Capital = Assets + Liabilities
B) Liabilities = Assets - Capital
C) Assets = Capital + Liabilities
D) Capital = Assets - Liabilities


2. A business has expanded rapidly during the current year. As a result the accounting records have been building up and the management accountant is having problems producing reports for each department head.
Which of the following would be the best solution if introduced?

A) Department head produce their own reports
B) Prepare fewer reports
C) Accounting codes
D) Extra working hours


3. Accounting records should be kept by all businesses for many reasons.
Which THREE of the following are reasons for keeping accounting records?

A) Indicates how successfully managers are performing
B) To reassure employees
C) Provides information about the resources and activities of a business
D) To aid the application of bank loans
E) In case of potential takeovers
F) Aids the efficient running of a business


4. Below is some information about Company TYY:
TYY offers a wholesale price for Product P of £650 per 100 quantity.
TYY offers regular customers a 35% trade discount.
On every 15th of the month, TYY offers a 15% cash discount on sales.
MPU wants to make a purchase from TTY for the first time, of900 Product Ps on the 15th of June. How much will MPU pay for this purchase?

A) £3,232.13
B) £4,972.50
C) £5,850.00
D) £3802.50


5. Refer to the exhibit.

A company has the following current assets and liabilities at its most recent year end:
When measured against standard acceptable levels for liquidity, the company can be said to have:

A) An ideal current ratio, but a low acid test ratio
B) A high current ratio and a low acid test ratio
C) An ideal acid test ratio, but a high current ratio
D) Ideal current and acid test ratios


Solutions:

Question # 1
Answer: A
Question # 2
Answer: C
Question # 3
Answer: A,C,F
Question # 4
Answer: B
Question # 5
Answer: C

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