Free CIMA BA3 Practice Exam with Questions & Answers | Set: 4

Refer to the Exhibit.

A company operates a FIFO system of inventory valuation. Opening inventory at the beginning of the period was 200 units @ £2.80 each. During the period the following movements of inventory were recorded.

The value of the closing inventory at the end of the period and amount charged to the income statement were:

Financial controls are needed in order to:

An accounting system should provide an audit trail for all its transactions

Which of the following describes an audit trail?

Accounting codes have proven to be very useful when recording business transactions.

Which THREE of the following does a coding system help to do?

Refer to the Exhibit.

Which of the following balances normally result from the double-entry system of book-keeping?

The answer is:

Your organization owed VAT of $22,700 at the beginning of the month.

During the month, it sold standard-rated goods with a net value of $600,000. Its purchases and expenses during the same month amounted to $188,000 including VAT. It paid VAT to the Revenue and Customs, of $33,400. The VAT rate is 17.5%

At the end of the month, the balance on the VAT account was:

On 1 January 2001, a company owed a supplier £840.

During the month of January the company purchased goods for £1400 and returned goods valued at £200. A payment of £200 was made towards the outstanding balance. The supplier offered a discount of 5% on purchases.

The balance on the supplier's account at the end of the period is:

At the beginning of the year, an organization’s non-current asset register showed a total net book value for fixed assets of £86,000. The nominal ledger showed non-current assets at cost of £120,000 and provision for depreciation of £39,000.

The disposal of a non-current asset for £10,000, at a profit of £2,000, had not been accounted for in the non-current asset register.

After correcting for this, the net book value shown in the ledger accounts would be

CC is preparing its bank reconciliation, and has the following information:

What will the bank balance be, as presented in the statement of financial position, once the necessary adjustments have been made''

A payment to a supplier has been credited to the supplier's account and debited to the bank account.

This would result in