CIMA CIMAPRA17-BA3-1 Exam Practice Test Instant Access

Question 1

GG has the following statement of profit or loss extract for the year ended 31 December 20X3

What is the interest cover for GG for the year ended 31 December 20X3?

A2.8 times

B4.0 times.

C4.5 times

D3.5 times

Answer : B

Question 2

The following are extracts from CD's financial statements for the year to 31 December 20X2:

What is the return on capital employed percentage (ROCE) for CD for the year ended 31 December 20X2?

A28 0%

B30 5%

C33.9%

D25.2%

Answer : C

Question 3

UVW is preparing its manufacturing account for the year ended 30 June 20X7 The following information is available:

What is UVWs prime cost for year ended 30 June 20X7?

A$352,000

B$344,000

C$389,000

D$397,000

Answer : A

Question 4

In relation to accounting coding systems in the computerized records of an entity, which of the following is true?

ACodes are used to cross-reference transactions

BCodes in coding systems are not unique

CCoding systems are not expandable

DCodes are used in the nominal ledger but not in payroll

Answer : A

Question 5

IAS 2 Inventories does not permit the use of the last in. first out (LIFO) method of valuing inventory In a time of rising prices, which of the following is a reason for this?

APurchases are overstated

BClosing inventory is understated.

CCost of sales are understated

DGross profit is overstated

Answer : B

Question 6

Which one of the following would not be considered a purpose of segregation of duty?

AEnsuring staff get experience of a variety of different tasks.

BEnsuring no one person should have complete control over any section of the bookkeeping system.

CPreventing fraudulent manipulation of the bookkeeping system.

DAvoiding opportunities for diverting money from the company.

Answer : A

Question 7

Which one of the following would not contribute to the prevention and detection of fraud?

AAppointing a single well-qualified person to maintain the ledger accounts

BConducting an audit

CInsisting that staff take holidays

DSegregating the duties of staff

Answer : A

CIMAPRA17-BA3-1 BA3 - Fundamentals of Financial Accounting Exam Practice Test