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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Refer to the Exhibit.

A company has the following information available for the month of June:
The opening receivables balance was $124,600.
The closing receivables balance at the end of June was

A) $117,200
B) $122,400
C) $116,000
D) $110,800

2. Life membership fees payable to a club or society are usually dealt with by:

A) Crediting the total received to a Life Memberships account and transferring a proportion each year to the income and expenditure account
B) Crediting the total received to the income and expenditure account in the year in which they are received
C) Debiting the total received to a Life Memberships account and transferring a proportion each year to the income and expenditure account
D) Debiting the total received to the income and expenditure account in the year in which they are received

3. STU has an accounting period end of 31 December 20X8 During the year STU paid $4,800 for business insurance to cover the year to 30 June 20X9 The amount paid for business insurance for 30 June 20X8 was
$4,500.
What is the insurance expense to be recognized in the statement of profit or loss of STU for the year ended 31 December 20X8? Give your answer to the nearest $

4. Which one of the following is an error of original entry?

A) An invoice for £592 debited and credited to the correct accounts, but for £529
B) An electricity bill debited and credited to the correct accounts but duplicated
C) The purchase of a non-current asset debited to the inventory account and credited to the suppliers account
D) A credit sale debited to the bank account and credited to the sales account

5. Refer to the Exhibit.

The following information is available for the period for AC Limited, a manufacturing company:
The factory cost of goods completed for the period was

A) $229,000
B) $230,000
C) $232,000
D) $228,000

Solutions: