CIMA Fundamentals of Financial Accounting : BA3

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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Which of the following is the correct double entry for a prepayment?

A) Debit expense Credit prepayment (current asset)
B) Debit prepayment (current asset) Credit expense
C) Debit prepayment (current liability) Credit expense
D) Debit expense Credit prepayment (current liability)

2. EFG pays employees $10 per hour The following rates of tax and social security are applicable.

An employee works 38 hours in a week.
What is the amount employee receives for one week's work? Given you answer to the nearest $.

3. A business may have thousands of transactions in any one accounting year. To trace the details of one of those transactions could be very difficult Which of the following would be a way to make this easier?

A) Efficient filing
B) Complete record keeping
C) Audit trail
D) Effective coding

4. Which of the following entries would result in the trial balance not agreeing?
(a) An invoice for £200 for electricity has been omitted from the ledgers (b) A payment received from a customer has been posted to the accounts twice (c) An invoice for repairs and maintenance has been charged to the non-current asset account (d) A payment made to suppliers had been recorded in the cash book but not recorded in the supplier's account

A) All of the above - (a), (b), (c) and (d)
B) (a) and (b) only
C) (d) only
D) (c) and (d) only

5. Internal controls are used to prevent errors occurring, as well as to detect errors which may have already occurred.
Which one of the following is an example of a 'prevent' control?

A) Preparing a bank reconciliation
B) Matching purchase invoices with Goods Received Notes
C) Reconciling control accounts with the ledger accounts
D) Preparing the trial balance

Solutions: