- Exam Code: BA3
- Exam Name: Fundamentals of Financial Accounting
- Updated: Oct 07, 2026
- Q & A: 395 Questions and Answers
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Accounting Principles, Concepts and Regulations | 10% | - Elements of financial statements - Accounting standards and principles - Nature and objective of financial accounting - Conceptual and regulatory framework |
| Topic 2: Preparation of Accounts for Single Entities | 30% | - Preparation of income statement - Preparation of statement of financial position - Manufacturing and inventory accounting - Adjusting entries and trial balance - Preparation of simple cash flow statement |
| Topic 3: Recording Accounting Transactions | 50% | - Accounting for assets, liabilities, equity and expenses - Reconciliations (bank, receivables, payables) - Double-entry bookkeeping and ledger accounts - Sources of records and books of prime entry - Correction of errors and control accounts |
| Topic 4: Analysis of Financial Statements | 10% | - Liquidity, profitability and solvency analysis - Interpretation using accounting ratios - Limitations of financial statements |
The method of accounting that attempts to recognize changing price levels by applying an industry or asset specific price index to the cost of goods sold and assets consumed is known as:
Correct Answer: A 🗳️
Which one of the following would not contribute to the prevention and detection of fraud?
Correct Answer: B 🗳️
Jasper has an opening capital balance at 1 January of $84,650 credit. During the period there was an increase in assets of $16,890 and an increase in liabilities of $22,480.
The balance on the capital account at the end of the period is:
Correct Answer: A 🗳️
Refer to the exhibit.
The following extracts from the statement of financial position and income statement for Company S are available:
Included in operating profit was depreciation of $120,000 and a loss on disposal of non-current assets of
$48,000.
The cash generated from operations for year 2 would be:
Correct Answer: D 🗳️
Company H receives a 10% discount on its order from supplier GD. Which ONE of the following does the discounted amount count as for Company H?
Correct Answer: B 🗳️
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