Chartered Institute of Management Accountants (CGMA) · Certificate in Business Accounting
CIMA BA3 Fundamentals of Financial Accounting: mock exams and practice questions
242 original exam-style questions for CIMA BA3 Fundamentals of Financial Accounting, with full timed mock exams in the real format and an explanation for every answer. Free for everyone until 31 January 2027.
- 242practice questions
- 4syllabus areas
- 2 hoursfull mock, like the real exam
CIMA BA3 exam format
2 hours, computer-based objective test (60 questions). The pass mark is 70%.
| Section | Format | Marks |
|---|---|---|
| Objective test | 60 questions: multiple choice, multiple response and number entry | 60 |
| Total | 60 |
Syllabus areas covered
- A · Accounting principles, concepts and regulations26 questions
- B · Recording accounting transactions120 questions
- C · Preparation of accounts for single entities72 questions
- D · Analysis of financial statements24 questions
Try 3 free CIMA BA3 questions
Real Fincora questions, with the full explanation. Sign up free for the full bank and timed mocks.
Sample question 1 · A · Accounting principles, concepts and regulations
According to the IASB's Conceptual Framework for Financial Reporting, which of the following are the two fundamental qualitative characteristics of useful financial information?
- A Comparability and understandability
- B Relevance and reliability
- C Relevance and faithful representation
- D Timeliness and verifiability
Show the answer
Answer: C. The Conceptual Framework (2018) has two fundamental qualitative characteristics: relevance (capable of making a difference to users' decisions, including materiality) and faithful representation (complete, neutral and free from error). Four enhancing characteristics improve the usefulness of information that is already relevant and faithfully represented: comparability, verifiability, timeliness and understandability.
Sample question 2 · B · Recording accounting transactions
Ingram Ltd uses a disposal account when it sells non-current assets. When a machine is sold, which entry transfers the accumulated depreciation on that machine to the disposal account?
- A Debit Disposal account; Credit Accumulated depreciation
- B Debit Accumulated depreciation; Credit Machinery (cost)
- C Debit Accumulated depreciation; Credit Disposal account
- D Debit Depreciation expense; Credit Disposal account
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Answer: C. Disposal entries:
1. Debit Disposal, Credit Non-current asset (cost) with the asset's original cost.
2. Debit Accumulated depreciation, Credit Disposal with the depreciation to date.
3. Debit Bank (or Receivables), Credit Disposal with the proceeds.
The balance on the disposal account is the profit (credit balance) or loss (debit balance) on disposal, transferred to the statement of profit or loss.
Sample question 3 · C · Preparation of accounts for single entities
Bramwell Joinery prepares a manufacturing account as well as a statement of profit or loss. Where should the depreciation of factory machinery be included?
- A In prime cost, alongside direct materials and direct labour
- B In factory (production) overheads, as part of the cost of goods manufactured
- C In administrative expenses in the statement of profit or loss
- D In distribution costs in the statement of profit or loss
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Answer: B. A manufacturing account builds up the cost of goods produced:
- Prime cost = direct materials + direct labour + direct expenses.
- Factory overheads = indirect production costs, such as factory rent, factory power, supervisors' wages and depreciation of factory machinery.
- Prime cost + factory overheads, adjusted for work in progress = factory cost of goods produced.
Non-production costs, such as administration and distribution, go in the statement of profit or loss below gross profit.
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