CIMA BA3 Exam : Fundamentals of Financial Accounting

CIMA BA3 exam
  • Exam Code: BA3
  • Exam Name: Fundamentals of Financial Accounting
  • Updated: Jul 16, 2026
  • Q & A: 395 Questions and Answers
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CIMA BA3 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Preparation of Accounts for Single Entities30%- Manufacturing and inventory accounting
- Preparation of statement of financial position
- Adjusting entries and trial balance
- Preparation of simple cash flow statement
- Preparation of income statement
Topic 2: Recording Accounting Transactions50%- Double-entry bookkeeping and ledger accounts
- Sources of records and books of prime entry
- Accounting for assets, liabilities, equity and expenses
- Reconciliations (bank, receivables, payables)
- Correction of errors and control accounts
Topic 3: Analysis of Financial Statements10%- Limitations of financial statements
- Liquidity, profitability and solvency analysis
- Interpretation using accounting ratios
Topic 4: Accounting Principles, Concepts and Regulations10%- Accounting standards and principles
- Conceptual and regulatory framework
- Elements of financial statements
- Nature and objective of financial accounting

CIMA Fundamentals of Financial Accounting Sample Questions:

1. A company has profit before tax and dividends of £500000. The share capital consists of 1000000 ordinary shares of £1 each and 100000 10% preference shares of 50p each.
A 10p dividend was declared on ordinary shares.
Assuming there was no tax liability for the period, profit retained for the period was


2. Refer to the exhibit.

The following information is available about the ordinary shares of a public limited company:
A shareholder who purchased 20,000 shares at a price of $1.90 will receive a dividend of

A) $1,900
B) $2,400
C) $500
D) $2,500


3. The IASB framework defines six characteristics of useful financial information.
Which one of the following is not one of these characteristics?

A) Complete
B) Prudent
C) Relevance
D) Timely


4. Refer to the exhibit.

Ronald has the following assets and liabilities at 31 December:
The capital balance at 31 December was

A) $32,100
B) $15,700
C) $37,300
D) $26,900


5. If closing inventory at the end of an accounting period is overvalued by £2000 and no adjustment is made, the net profit in the following accounting period will be:

A) £4,000 understated
B) £4,000 overstated
C) £2,000 understated
D) £2,000 overstated


Solutions:

Question # 1
Answer: Only visible for members
Question # 2
Answer: C
Question # 3
Answer: B
Question # 4
Answer: A
Question # 5
Answer: C

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