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DRAG DROP
CDE, an entity registered for sales tax, purchases a piece of equipment for cash on 31 December 20X6 for $30,000 including sales tax. The sales tax rate is 20%. What is the journal entry required to record this transaction in the nominal ledger?
Place the labels in the corresponding position in the table below:
Answer is in the explanation below.
There are four separate but related bodies which control the setting of International accounting standards (IFRS’s).
Which THREE of the following are included in the standard setting process?
Select all that apply, then click Submit answer.
International Accounting Standards Board (IASB)
Accounting Standards Board (ASB)
International Financial Reporting Interpretations Committee (IFRIC)
Chartered Institute of Management Accountants (CIMA)
Financial Accounting Standards Board (FASB)
International Accounting Standards Committee Foundation (IASCF)
Fraud will only be prevented successfully if potential fraudsters perceive the risk of detection as high.
Which THREE of the following are ways to prevent fraud?
Select all that apply, then click Submit answer.
Sufficient internal control systems
Computerized accounting systems
Continuous supervision of all employees
Regular reconciliations
Surprise audit visits
Maintaining books of prime entry
As well as independence other essential elements of internal audit can be identified.
Which THREE of the following would be classed as essential elements of internal audit?
Select all that apply, then click Submit answer.
Due care
Relationships
Cost efficient
Timely
Evidence
Efficient
The Finance Director of EFG company has made the following statements regarding the recording of expenditure relating to the entity's property, plant and equipment (PPE) in the nominal ledger.
Which THREE of the following statements are true?
Select all that apply, then click Submit answer.
The annual depreciation charge reduces EFG's profit for the year.
The cost of insurance for the factory is debited to the PPE asset account.
The loss on the disposal of PPE reduces EFG's profit for the year
The cost of repainting the office is credited to the repairs expense account
The loss on the disposal of PPE is recorded in a liability account
The annual depreciation charge reduces the carrying value of PPE
Select the THREE INCORRECT statements from the following list of statements about memorandum accounts:
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A memorandum ledger is an account that is not part of the bookkeeping system as a whole
All transactions in a memorandum account have to be balanced with a corresponding entry in the nominal ledger
A memorandum account is part of the nominal ledger
A memorandum account is a daybook
Office equipment store Officework Ltd has made the following purchase from supplier GX:
50 printers costing £3,500 £6,400
worth ofA4 paper £101,500
worth of general stationary
This purchase has been made on credit. Which TWO of the following show how the transaction should be recorded in Officework Ltd's documents?
Select all that apply, then click Submit answer.
£111,400 debit to payables
£111,400 debit to purchases
£111,400 credit to purchases
£111,400 credit to payables
£111,400 credit to stock
£111,400 debit to stock
£111,400 credit to receivables
In internal auditing, detection of fraud is an important objective. The auditors will best be able to detect frauds if they are knowledgeable in the most common methods of fraud.
Which THREE of the following are common methods of fraud?
Select all that apply, then click Submit answer.
Ghost employees
Taking stationary home
Teeming and lading
Using a company car for personal use
Collusion with external parties
Using company phones for private calls
A contra entry is best described as:
Select an option, then click Submit answer.
An entry made between two customers in the sales ledger
An entry made between two customers in the purchase ledger
An entry made to set off the balances of the same account within the sales ledger and the purchase ledger
An entry made to balance the control account
Mr UY has just had property P re-valued. Mr UY originally purchased property P for
£560,000. It is now worth £780,000.
Which ONE of the following shows how this transaction should be recorded in Mr UY's property account?
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£220,000 credit
£220,000 debit
£780,000 debit
£780,000 credit
IAS 2 Inventories does not permit the use of the last in. first out (LIFO) method of valuing inventory In a time of rising prices, which of the following is a reason for this?
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Purchases are overstated
Closing inventory is understated.
Cost of sales are understated
Gross profit is overstated
A ledger account is opened with a credit balance of $400. During the period the account is credited with $5,800 and debited with $6,500
What balance will open this account in the following period?
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$300 Credit
$300 Debit
$1,100 Credit
$1,100 debit
The sales ledger control account shows a balance of $267,984 whilst the individual customer account balances total $262,856.
Which of the following is a possible explanation for the difference between the two?
(i) A payment has been recorded in the cashbook but not in the sales ledger
(ii) A payment has been recorded in the sales ledger but not in the cashbook
(iii) An invoice has been recorded in the sales ledger but not in the sales day book
(iv) An invoice has been recorded in the sales day book but not in the sales ledger
Select an option, then click Submit answer.
(i) and (iii) only
(ii) and (iv) only
(i) and (iv) only
(ii) and (iii) only
CORRECT TEXT
GG has the following statement of profit or loss extract for the year ended 31 December
20X3
What is the interest cover for GG for the year ended 31 December 20X3?
Select an option, then click Submit answer.
2.8 times
4.0 times.
4.5 times
3.5 times
Refer to the exhibit.
Harvey commenced business with capital of $50,000. At the end of the first financial year, he has
What was the profit for the period?
Select an option, then click Submit answer.
$7,000 profit
$7,000 loss
$23,000 profit
$23,000 loss
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The target audience for the CIMA BA3 exam is those individuals who wish to become a qualified business analyst. The Prerequisite for the CIMA BA3 Exam is to have passed the CIMA Certificate in Business Accounting (Cert BA).
Work through the questions one at a time and read every explanation, even for the ones you get right — the reasoning behind an answer is what the real exam tests. If one area keeps costing you marks, you have found exactly what to revise before exam day.
Think of the result as a map, not a verdict. The questions you miss point straight at the topics that need work, and the explanations tell you why the correct option wins. Candidates who loop through that cycle — practise, review the reasoning, re-test — walk into the real exam having already seen their weak spots and fixed them.
Inside the full BA3 practice set:
There is no clock and no account needed. Answer each question, check the result, and read the explanation before moving on. For anything that still feels unclear, Ask AI is built into this AI-Enabled practice test — it explains the concept behind the question so the next one like it gets easier. Ready for more? The full 393-question set adds a timed Exam Simulation mode, topic training for your weak areas, and a flagged-question review, so you can practise the way the real exam feels.
Yes — the 15 questions on this page are completely free, with no signup and no payment details needed.
393 questions. The 15 free questions above are a sample of that full set, in the same style and topic balance.
Yes — every question shows the correct answer with an explanation, and Ask AI can explain the concept behind a question in plain words if you want to go deeper.
No. This is a practice test: the questions are written to mirror the real BA3 exam’s topics and difficulty, not copied from it.
