Free CIMA BA3 Exam Dumps Questions & Answers

A company has profit before tax and dividends of £500000. The share capital consists of 1000000 ordinary shares of £1 each and 100000 10% preference shares of 50p each.
A 10p dividend was declared on ordinary shares.
Assuming there was no tax liability for the period, profit retained for the period was

Which of the following is an example of where the materiality convention should be applied?

• A.  Sales to a customer in September, but for which the cash was not received until October.
• B.  A proposed change in the method of depreciation of non-current assets.
• C.  Inventory of stationery items remaining at the year end.
• D.  A two-year construction contract.

Which of the following is the final document in the audit trail?

• A.  Invoice
• B.  Receipt
• C.  Credit note
• D.  Purchase order

FY owns bakery T.
Which of the following are examples of FY's liabilities?

• A.  Regular bread order fulfilled for local school
• B.  Shop building itself
• C.  Business loan
• D.  Ovens
• E.  Mortgage on bakery shop
• F.  Standing order with flour supplier

After calculating your company's profit for the year, you discover that:
(a) A non-current asset costing £2,000 has been included in the purchases account; the asset has not been included in the closing inventory figure; nor has it been depreciated by the normal 25% per annum (b) Closing inventory of raw materials, costing £500, have been treated as closing inventory of stationery.
These two errors have had the effect of.

• A.  Understating gross profit by £2,500 and understating net profit by £1,500
• B.  Understating gross profit by £2,000 and understating net profit by £2,500
• C.  Understating both gross profit and net profit by £2,500
• D.  Understating both gross profit and net profit by £1,500