CIMA CIMAPRA17-BA3-1 Quiz 1 Topic 1 Questions 1-5

Question: 1

Store Y believe customer XF will not be able to pay his 300 debt. Which ONE of the following day books should this 'bad debt' be recorded in?

AReturns inwards daybook

BSales daybook

Cjournal

DCash book

EPetty cash book

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Question: 2

The phrase 'net book value', when applied to the statement of financial position figure for non-current assets, indicates that the figure represents:

AThe current market value of the assets

BThe current market value of the assets, less accumulated depreciation

CThe original cost or valuation of the assets, less accumulated depreciation

DThe replacement cost of the assets

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Question: 3

Refer to the exhibit.

q3_CIMAPRA17-BA3-1

The following information is available in respect of two companies that operate in the same market sector:

Which one of the following statements most accurately describes the companies' relative position?

ACompany A has the shortest working capital cycle and the best control on both inventories and payables.

BCompany B has the shortest working capital cycle and the best control on both inventories and payables.

CCompany A has the shortest working capital cycle and the best control on inventories.

DCompany B has the shortest working capital cycle and the best control on payables and receivables.

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Question: 4

''To assure shareholders that the stewardship of the organization was effectively carried out.''

What does this definition describe?

AInternal audit

BPreparation of financial statements

CExternal audit

DReconciliation process

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Question: 5

The external auditor seeks to provide an opinion on whether the accounts show a true and fair view

What is the international term for 'true and fair view'?

AGoing concern

BPrudence

CFair presentation

DCompleteness

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CIMA CIMAPRA17-BA3-1 Quiz:1 Topic:1 Questions:1-5