Financial Accounting (BA3)
150 questions mapped to the CIMA Certificate syllabus (Fundamentals of Financial Accounting): stable since 2017, with no annual changes unlike ACCA. Covers accounting concepts, double-entry bookkeeping, non-current assets (IAS 16/38), inventory valuation (FIFO, LIFO and AVCO under IAS 2), financial statement preparation and ratio analysis. Switch to Exam Sim mode for a timed CIMA BA3 mock exam: 60 questions, 2 hours.
→ BA3 Common Mistakes & Exam Technique: the errors that catch BA3 students out, and how to avoid them.
The BA3 exam format
| Format | Computer-based objective test. All questions are compulsory. |
|---|---|
| Length | 2 hours, 60 questions. |
| Scoring | Reported as a scaled score from 0 to 150. Questions are weighted by difficulty, so the scaled score is not a straight percentage of questions answered correctly. |
| Pass mark | 100 out of 150. |
Always check the current exam format on the AICPA & CIMA website before you sit.
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BA3 Formula Sheet: all key formulas on one printable A4 page. Free to download, or see what's on it.
↓ Download PDFSample BA3 questions
Three questions from this bank, each with its answer and worked explanation. The quiz above draws from all 150.
In which book of prime entry would a credit sale first be recorded?
- The cash book
- The purchases day book
- The journal
- The sales day book
Show answer and explanation
Answer: D. Credit sales are first listed in the sales day book (sales journal) before being posted to the ledgers. The cash book records receipts and payments of cash, the purchases day book records credit purchases, and the journal records adjustments and items that do not fit the other books. Each category of transaction has its own book of prime entry as the first point of recording.
A customer's debt of £800 is considered irrecoverable and is to be written off. What is the correct double entry?
- Debit irrecoverable debts expense £800, credit receivables £800
- Debit receivables £800, credit irrecoverable debts expense £800
- Debit cash £800, credit receivables £800 in full
- Debit receivables £800, credit cash £800 in full
Show answer and explanation
Answer: A. Writing off an irrecoverable debt removes the asset and recognises an expense: debit irrecoverable debts expense (increasing expenses) and credit receivables (removing the amount owed). Reversing the entry would wrongly reinstate the asset, and a cash entry would imply the customer had paid, which is not the case for a write-off. The debt is removed because it is no longer expected to be recovered.
The accounting concept that revenue and the costs incurred in earning that revenue should be recognised in the same accounting period is the:
- Going concern concept
- Materiality concept
- Accruals (matching) concept
- Prudence concept
Show answer and explanation
Answer: C. The accruals (matching) concept requires income and the expenses incurred in generating it to be recognised in the same period, regardless of when cash is received or paid. Going concern assumes the business will continue operating, materiality concerns whether an item is significant enough to influence decisions, and prudence concerns not overstating assets or income. Matching costs to the related revenue is the accruals concept.
About this question bank
150 questions across 4 syllabus sections, each mapped to a reference in the official CIMA syllabus for BA3 and each with a worked explanation. 75 are multiple choice and 75 are numerical, where you work the answer out before choosing it.
- Written to CIMA's 2017 Certificate in Business Accounting syllabus.
- Spotted a mistake? Report it and it will be corrected.
| Syllabus section | Questions |
|---|---|
| A: Principles | 15 |
| B: Recording | 75 |
| C: Preparation | 45 |
| D: Analysis | 15 |