CIMA BA3 : Fundamentals of Financial Accounting

  • Exam Code: BA3
  • Exam Name: Fundamentals of Financial Accounting
  • Updated: Sep 27, 2026

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CIMA BA3 Exam Syllabus Topics:

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

CIMA Fundamentals of Financial Accounting Sample Questions:

Question #1

Refer to the exhibit.

A company has the following transactions for the month of April:
Closing inventory at the end of the period was $26,000 and gross profit was $90,000. The opening inventory was therefore:

  • A. $6,000
  • B. $32,000
  • C. $26,000
  • D. $20,000
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #2

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. £4,972.50
  • B. £3,232.13
  • C. £3802.50
  • D. £5,850.00
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #3

A company has a year end of 31 December. Rent of $12,000 was paid on 1 October in year 1 to cover the period to 30 September year 2 and on 1 October year 2 $16,000 was paid for the following year The figure for rent payable that should be shown in the income statement for the year 2 will be

Reveal Solution  Discussion  0

Correct Answer:

$13000

Question #4

An audit trail is an essential part of an efficient, complete accounting system Why is an audit trail important?

  • A. To ensure all transactions are approved
  • B. To ensure all transactions can be traced through the system
  • C. To ensure all transactions are recorded
  • D. To ensure all transactions can reported
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

The statement of cash flow is a primary statement.
Which of the following gives the best description of the information provided to users by a statement of cash flow?

  • A. Financial performance
  • B. Liquidity, viability and adaptability
  • C. Financial position
  • D. Going concern status
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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