Free CIMA BA3 Practice Exam with Questions & Answers | Set: 5

The ability of a company to pay their payables

The earnings generated per £1 of capital

The use of assets

The profitability of a company

The current market value of the assets

The current market value of the assets, less accumulated depreciation

The original cost or valuation of the assets, less accumulated depreciation

The replacement cost of the assets

£1,562 CR

£1,562 DR

£10,502 CR

£8,940 DR

$300 Credit

$300 Debit

$1,100 Credit

$1,100 debit

A sales tax receivable account will be prepared in the nominal ledger

Sales tax will not be added to the sales price of goods invoiced to customers

Sales tax will not be added to the cost of goods and expenses supplied

Profit for the year will be reported net of sales tax.

Purchase of raw materials

Cost of electricity consumed in the period

Profit and loss on disposal of a non-current asset

Interest on bank loans

Higher, resulting in greater risk for shareholders

Higher, resulting in greater security for shareholders

Lower, resulting in greater security for shareholders

The same as the previous year

£5,550,000

£8,150,000

£8,350,000

£8,800,000

(a) and (b) only

(b) and (c) only

(c) and (d) only

(a), (b) and (c) only

An increase in cost of sales, an increase in gross profit and a decrease in the inventory figure in the statement of financial position.

A decrease in cost of sales, a decrease in gross profit and a decrease in the inventory figure in the statement of financial position.

A decrease in cost of sales, an increase in gross profit and a decrease in the inventory figure in the statement of financial position.

An increase in cost of sales, a decrease in gross profit and a decrease in the inventory figure in the statement of financial position.