FR111.FFA (F.L) Question CMA January-2023 Exam.
FR111.FFA (F.L) Question CMA January-2023 Exam.
FR111.FFA (F.L) Question CMA January-2023 Exam.
FOUNDATION LEVEL
FUNDAMENTALS OF FINANCIAL ACCOUNTING
Instructions to Candidates
You MUST NOT write anything during the reading time.
You should attempt ALL questions.
Answers should be properly structured and relevant.
Carefully read ALL the requirements and sub-questions before attempting a specific
question.
ALL answers must be written in the answer book.
AVOID WRITING/MARKING on the question paper at any time which may cause disciplinary
action.
Start answering each question from a fresh sheet.
Answers should be clearly numbered with the sub-question number.
Allowable Materials
Writing Stationaries
Non-programmable Calculator
Assessment Structure
Sub- Expected Time
Marks
question Required
Question 1 Multiple Choice Questions 15 15 25 minutes
Section Question 2 Modified True/False 5 5 10 minutes
A Question 3 Matching 5 5 10 minutes
Question 4 Short Answer Questions 3 15 20 minutes
Question 5 Essay/Computational/Case 3 20 35 minutes
Section
Question 6 Essay/Computational/Case 2 20 35 minutes
B
Question 7 Essay/Computational/Case 3 20 35 minutes
Revision 10 minutes
Total 100 180 minutes
RESTRICTED USE
This paper MUST NOT BE REMOVED from the examination venue
(i) Which one of the following accounting concepts requires an entity to measure inventories at
the lower of the cost and net realizable value?
(a) Going Concern Concept
(b) Prudence Concept
(c) Matching Concept
(d) Historical Cost Concept
(e) Conservatism
(ii) AB Ltd operates a petty cash imprest system. Petty cashier is being given an imprest of
BDT100,000 and it is reimbursed on the last day of every month. During the month of
January 2022 petty cashier has spent BDT 89,500 from the imprest. What was the amount
given by main cashier to the petty cashier to reimburse the imprest on 31 January 2022?
(a)10,500
(b)100,000
(c) 89,500
(d)189,500
(e) 87,000
(iii) On 31 December 2021, an entity sold goods which cost BDT 30,000 on credit by allowing a 10%
trade discount on the selling price of BDT 50,000. The buyer settled the payment after two weeks.
Upon settlement of the payment, the buyer was given a further cash discount of BDT 2,000. What
is the effect of the above events on the equity of the entity as at 31 December 2021?
(a) Equity will increase by 13,000
(b) Equity will increase by 15,000
(c) Equity will increase by 20,000
(d) Equity will decrease by 30,000
(e) No change in equity
(iv) A business prepares its accounts to 31 December 2021. The trial balance includes BDT
9,000 for electricity used from 1January to 30 September 2021. How much needs to be
accrued at the year end?
(a) 9,000
(b) 3,000
(c) 6,000
(d) 2,000
(e) 1,000
(v) A business has opening inventory BDT 30,000, achieves a mark up of 25% on sales, sales
totaled BDT 1,000,000,purchases were BDT 840,000. What is the value of closing inventory?
(a) 30,000
(b) 40,000
(c) 120,000
(d) 70,000
(e) 80,000
QUESTION 2 [5 × 1 = 5 MARKS]
There are five (5) statements given under the question. Identify the statements as True or False. If
the statement is false, rewrite the statement on the answer script to make it ‘True’. Reasoning is
NOT required. Follow the example given below in providing your answer.
Example:
(a) ICMAB stands for the Industrial Cost Management and Accounting of Bangladesh.
Answer:
(a) False. ICMAB stands for the Institute of Cost and Management Accountants of
Bangladesh.
Note:
You will not get any mark if you simply rewrite as ICMAB does not stand for the
Industrial Cost Management Accountants of Bangladesh.
If the statement is true, you need NOT to rewrite the statement rather only mention that
the statement is True.
(a) Verifiability means that different knowledgeable and independent observers could reach
consensus, although not necessarily complete agreement, that a particular depiction is a
faithful representation.
(b) Net realizable value is the selling price less all costs to completion and less selling costs.
(c) Statements of cash flows concentrate on the sources and uses of cash and are a useful
indicator of a company's liquidity and solvency.
(d) Operating cycle is an average period of time it takes for a business to pay cash to obtain
products or services and then receive cash from customers for these products or services.
(e) Chart of accounts is a list of a company’s accounts and account numbers that identify where
the accounts are in the general ledger.
Example:
Column A Column B
1. ICMAB (a) Professional accountancy body
(b) University
Answer: 1 (a)
END OF SECTION A
Assets Amount
Cash Tk. 20,000
Accounts receivable 50,000
Merchandise inventory 36,000
Boat 24,000
Total assets: Tk. 130,000
Guy admits that his knowledge of accounting is somewhat limited and is concerned that his
statement of financial position might not be correct. He gives you the following additional
information:
1. The boat actually belongs to Guy Gelinas, not to GG Corporation. However, because Guy
thinks he might take customers out on the boat occasionally, he decided to list it as an asset
of the company. To be consistent, he also included as a liability of the company the personal
bank loan that he took out to buy the boat.
2. Included in the accounts receivable balance is Tk 10,000 that Guy personally loaned to his
brother five years ago. Guy included this in the receivables of GG Corporation so that he
wouldn’t forget that his brother owes him money.
3. Guy’s statements didn’t balance. To make them balance, he adjusted the Common Share
account until assets equalled liabilities and shareholders’ equity.
Required:
(i) Identify any corrections that should be made to the statement of financial position and
explain why.
(ii) Prepare a corrected statement of financial position. (Hint: To get the balance sheet to
balance, adjust Common Shares).
Non-current liabilities
12% interest bearing loans and borrowings 112,500 -
112,500 -
Current liabilities
Trade payables 75,000 175,000
12% interest bearing loans and borrowings 39,000 -
114,000 175,000
Total equity and liabilities 1,509,967 795,000
Extracted information of the statement of comprehensive income for the year ended 31 March
2021:
BDT
Other income: Profit on sale of investment 31,000
Depreciation 30,833
Finance cost 4,500
Profit before tax 648,667
Income tax expenses 35,200
Profit after tax 613,467
Additional information:
(i) During the year the company acquired BDT 491,800 worth of office equipment.
(ii) The company has disposed part of its investments for BDT 56,000 and the carrying value of
the same as at the date of disposal was BDT 25,000.
(iii) A bank loan of BDT 150,000 at an annual interest rate of 12% was obtained on 31 December
2020 under the following terms.
Capital portion of the loan capital is payable in 4 equal annual installments commencing
from 31 December 2021.
The monthly interest of the loan is paid one month in arrears.
END OF SECTION B