Free CIMA BA3 Practice Exam with Questions & Answers

Refer to the Exhibit.

John, an employee of Kelt Ltd, earns gross wages for a week of £425.76.

Income tax is deducted at a rate of 25% on all earnings in excess of £85.00 per week and he is also liable to pay National Insurance contributions of 9% of his total earnings. Employers national insurance contributions are at a rate of 10.5%.

What are the correct ledger entries in the accounts of Kelt Ltd?

The answer is:

Refer to the exhibit.

Both internal and external audits can be performed on the financial statements of a company. The results of the audits have different purposes and different reporting lines.

Which of the following combinations is correct?

A basic principle of accounting is that resources are normally stated in accounts at historical cost.

Which THREE of the following are alternative ways of measuring resources?

The owner of a business takes goods from inventory for his own personal use

Which of the following accounting concepts would be relevant to this transaction?

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

The financial accounts, as prepared by the directors of a company, are required to show a 'true and fair view'. This means that:

Below are a list of entries from FG's accounts, from the most recent accounting period:

Petty Cash £150 DR

Returns Outwards £310 CR

Purchases £820 DR

Sales £250 CR

FG started the period with a bank balance of £405 DR. The total bank account at the end of period was £1,065 DR

Which of the above items has been omitted from the bank account total?

The trial balance shows the debit total as $200 less than the credit total.

This could be due to:

ABC manufactures vehicle engines and purchases components from a supplier Each engine requires one component costing $10 each ABC's supplier otters a 5% volume discount which has always been taken, this reduces the cost to $9.50 each. However, ABC has recorded the cost as $10 throughout the accounting system

Once the correct price is recorded, what will be the effect on the factory costs incurred and the gross profit margin (GP%)?

A)

B)

C)

D)

Which one of the following best describes the stewardship function?