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Free CIMA BA3 Practice Exam with Questions & Answers | Set: 7

Questions 61

A company is preparing its accounts to 30 November. The latest gas bill received by the company was dated 30 September and included usage charges for the quarter 1 June to 31 August of $5,700 and a service charge of $1,200 for the quarter 1 October to 31 December. It is estimated that the gas bill for the following quarter will be a similar amount.

What will be the amount of the accrual shown in the accounts at 30 November 2006?

Options:
A.

$5,300

B.

$3,400

C.

$3,800

D.

$4,900

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Questions 62

Comany D recently purchased an intangible asset from CompanyJFY, which was priced at £150,500, which Company D paid, along a goodwill amount that totalled 25% of the asking price.

Company D has estimated that the purchased entity will have a useful life of 35 years. Company D has decided to amortise the cost of the new asset using the straight line method.

What will the amortisation figure per annum be for Company D's new entity?

Options:
A.

£5,375

B.

£4,300

C.

£1,075

D.

£5,500

Questions 63

Refer to the Exhibit.

BA3 Question 63

A company operates a FIFO system of inventory valuation. The following information is available for the month of April:

The closing value of inventory at the end of the month of April is

Options:
Questions 64

HJK has maintained minimal accounting records during the year but has the following information available:

BA3 Question 64

HJK charges a mark-up on all goods sold of 25%. What is HJK's gross profit for the year?

Options:
A.

$77,500

B.

$62,000

C.

$57,500

D.

$46,000

Questions 65

A company has a debt/equity ratio of 50%. If the company's total equity is $750,000, what is the gearing ratio for the company?

Options:
A.

33.33%

B.

200%

C.

50%

D.

Impossible to tell from information provided.

Questions 66

Which one of the following best describes the purpose of an external audit of financial statements?

Options:
A.

The auditor advises on the use of International Financial Reporting Standards.

B.

The auditor checks the statements for evidence of fraud.

C.

The auditor expresses an opinion on the truth and fairness of the financial statements.

D.

The auditor expresses an opinion on corporate governance issues.

Questions 67

In accordance with IAS 7 Statements of Cash Flow, which TWO of the following are cash flows presented as investing activities?

Options:
A.

Cash paid for additions to property, plant and equipment

B.

Revaluation gam on property, plant and equipment

C.

Interest paid

D.

Dividends paid

E.

Interest received

Questions 68

Internal controls are used to prevent errors occurring, as well as to detect errors which may have already occurred.

Which one of the following is an example of a 'prevent' control?

Options:
A.

Reconciling control accounts with the ledger accounts

B.

Preparing the trial balance

C.

Matching purchase invoices with Goods Received Notes

D.

Preparing a bank reconciliation

Questions 69

What is the balance of the trading account?

Options:
A.

The gross profit

B.

The revenue value

C.

The closing inventories total

D.

The total income

Questions 70

Which THREE of the following are subsidiary bodies of the IFRS Foundation?

Options:
A.

International Accounting Standards Board

B.

IFRS Advisory Council

C.

International Advisory Committee

D.

IFRS Interpretations Committee

E.

International Advisory Standards Board

F.

Advisory Interpretations Committee