CIMA cimapra17-ba3-1 practice test

Question 1

GH operates an imprest system for petty cash, maintaining a float of $250 The following petty cash
book extract is available for a week in March 20X6:

How much does GH need to transfer from the bank account at the end of this week In order to
maintain the imprest system?
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A. The total spend of $185
B. The float total of $250.
C. The total of the float and total spend of $435
D. The difference between the float and total spend of $65

Answer:

A
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Question 2

VWX is registered for sales tax in Country B A sales invoice to its mam customer shows the following
information:

What journal entry will WVX process to record this transaction in its nominal ledger?
A)
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B)

C)

D)

• A. Option A
• B. Option B
• C. Option C
• D. Option D

Answer:

B

Question 3

Which of the following would meet the definition of a liability in accordance with the Conceptual
Framework's definition?

• A. An amount due from a customer for goods dispatched two weeks ago
• B. An amount due to a supplier for goods to be purchased in one month's time
• C. An amount which was paid to a supplier in relation to a dispute
• D. An amount due to a supplier for goods purchased one month ago

Answer:

B

Question 4

In the year ended 31 December 20X1, XYZ receives an email confirming that a major customer has
gone into liquidation and will be unable to pay its suppliers.
Which of the following is the impact of adjusting for this event?

• A. Profits increase and allowance increases.
• B. Receivables decrease and allowance increases
• C. Receivables unchanged and profits decrease
• D. Receivables decrease and profits decrease

Answer:

D

Question 5

CORRECT TEXT
At 1 June 20X9 XY has opening inventory of 80 units at a cost of $7.60 each XY purchases the
following units during the month of June:

During June 20X9, XY sold 250 units at a price of $15.00 each XY uses the first in. first out (FIFO)
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method of inventory valuation What is the value of XYs closing inventory at 30 June 20X9? Give your
answer to the nearest $.

Answer:

$970

Question 6

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?

• A. The annual depreciation charge reduces EFG's profit for the year.
• B. The cost of insurance for the factory is debited to the PPE asset account.
• C. The loss on the disposal of PPE reduces EFG's profit for the year
• D. The cost of repainting the office is credited to the repairs expense account
• E. The loss on the disposal of PPE is recorded in a liability account
• F. The annual depreciation charge reduces the carrying value of PPE

Answer:

A. C, F

Question 7

DRAG DROP
Complete the formula for depreciation of a revalued asset.
Place the relevant labels in the correct positions below.

Answer
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Answer:

$1450

Question 8

CORRECT TEXT
GH has the following transactions for the week of January 20X8:

GH is not registered for sales tax
What is the total of the sales day book for this week? Give your answer to the nearest whole
number:

Answer:

$1450

Question 9

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?

• A. 2.8 times
• B. 4.0 times.
• C. 4.5 times
• D. 3.5 times 142/147 Questions & Answers PDF P-

Answer:

B

Question 10

The following are extracts from CD's financial statements for the year to 31 December 20X2:
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What is the return on capital employed percentage (ROCE) for CD for the year ended 31 December
20X2?

• A. 28 0%
• B. 30 5%
• C. 33.9%
• D. 25.2%

Answer:

C