ExpertACCA
ACCA FA — Financial Accounting Practice Exam 1
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A complete mock exam replication for ACCA Financial Accounting (FA). This exam mirrors live computer-based testing parameters, featuring 35 Objective Test Questions (Section A) and 2 Multi-Task Questions broken down into 30 independent sub-questions (Section B). Covers double-entry accounting, ledger adjustments, group consolidations, and financial statement production.
65
Questions
Mixed
Difficulty
50%
Pass mark
Difficulty breakdown
Easy(21)
Medium(35)
Hard(9)
Topics covered
Browse all topics →Sample questions
Q01Medium2 marks
Section A
BioGenix Ltd, a pharmaceutical startup, has spent $2 million on researching a new synthetic protein. The directors want to capitalize this cost as an intangible asset to improve the appearance of the statement of financial position, even though the project has not yet demonstrated technical feasibility.
Which fundamental qualitative characteristic of financial information would be breached if BioGenix capitalizes these research costs?
Q02Easy2 marks
Section A
Which of the following bodies is primarily responsible for issuing International Financial Reporting Standards (IFRS)?
Q03Medium2 marks
Section A
SolarTech Manufacturing recently upgraded its primary assembly line. Which TWO of the following expenditures should be classified as capital expenditure?
Q04Medium2 marks
Section A
AgriGrow Ltd sells specialized farming equipment. A customer purchases a tractor for $55,200, which is inclusive of a 15% sales tax.
What is the correct double entry to record this cash sale in AgriGrow Ltd's books?
Q05Medium2 marks
Section A
Oceanic Logistics provides shipping services. They issue an invoice for $10,000 to a client. Oceanic offers a 5% trade discount to this client, and an additional 2% early settlement discount if payment is made within 10 days. Oceanic expects the client to take the early settlement discount.
At what amount should Oceanic Logistics initially record the revenue?
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All questions (65)
Free to browse · no sign-up requiredQ01**Section A**
BioGenix Ltd, a pharmaceutical startup, has spent $2 million on researching a new synthetic protein. T...MediumQ02**Section A**
Which of the following bodies is primarily responsible for issuing International Financial Reporting S...EasyQ03**Section A**
SolarTech Manufacturing recently upgraded its primary assembly line. Which TWO of the following expend...MediumQ04**Section A**
AgriGrow Ltd sells specialized farming equipment. A customer purchases a tractor for $55,200, which is...MediumQ05**Section A**
Oceanic Logistics provides shipping services. They issue an invoice for $10,000 to a client. Oceanic o...MediumQ06**Section A**
Quantum Computing Ltd has 500 units of a specific microchip in inventory. The original cost was $120 p...MediumQ07**Section A**
During a period of consistently rising purchase prices (inflation), a company switches its inventory v...HardQ08**Section A**
Metro Builders Ltd purchased a piece of heavy machinery on 1 January 20X1 for $100,000. It had an esti...MediumQ09**Section A**
On 1 January 20X4, Crimson Textiles bought a weaving machine for $60,000. It was being depreciated ove...HardQ10**Section A**
Under IAS 38 Intangible Assets, which TWO of the following criteria must be met before development cos...MediumQ11**Section A**
Vertex Consulting pays its annual office rent of $24,000 in advance on 1 April each year. The company'...EasyQ12**Section A**
Titan Electronics sells appliances with a one-year warranty. Based on past experience, 5% of appliance...MediumQ13**Section A**
Silverstone Mining is currently facing a lawsuit from environmental regulators. The company's legal te...EasyQ14**Section A**
At 1 January 20X8, Delta Merchants had an allowance for receivables of $4,500. During the year, a debt...HardQ15**Section A**
The payables ledger control account of Orion Supplies shows a balance of $45,600. The total of the ind...MediumQ16**Section A**
Nautilus Marine's cash book shows a debit balance of $12,400. The bank statement shows a credit balanc...MediumQ17**Section A**
A trial balance failed to agree, and a suspense account was opened with a debit balance of $800. The f...HardQ18**Section A**
Which of the following describes an 'error of principle'?EasyQ19**Section A**
Draft net profit for the year is $45,000. The following errors are discovered:
1. Closing inventory wa...MediumQ20**Section A**
A fire destroyed the warehouse of Phoenix Traders. The following information is available:
Opening inv...MediumQ21**Section A**
A sole trader suspects an employee has been stealing cash from the till.
Opening cash balance: $500
C...EasyQ22**Section A**
Jupiter PLC issues 100,000 ordinary shares of $0.50 nominal value at a price of $1.20 per share.
Wha...EasyQ23**Section A**
A company makes a 1 for 4 bonus issue of shares. Prior to the issue, the company had 200,000 $1 ordina...MediumQ24**Section A**
Saturn PLC has 500,000 ordinary shares of $0.25 in issue. It makes a rights issue of 1 new share for e...MediumQ25**Section A**
When preparing a Statement of Cash Flows using the indirect method, how should an increase in trade re...MediumQ26**Section A**
During the year, a company sold a machine for cash. The machine originally cost $80,000 and had accumu...MediumQ27**Section A**
Which TWO of the following are classified as adjusting events after the reporting period under IAS 10?MediumQ28**Section A**
Under IFRS 15 Revenue from Contracts with Customers, what is the core principle for recognizing revenue?EasyQ29**Section A**
A sole trader takes goods from inventory for personal use. The goods originally cost $400 and had a se...EasyQ30**Section A**
According to IFRS 10 Consolidated Financial Statements, which of the following is NOT a required eleme...MediumQ31**Section A**
Alpha Co owns 30% of the ordinary shares of Beta Co and has representation on Beta Co's board of direc...EasyQ32**Section A**
When preparing a consolidated statement of financial position, how are the pre-acquisition retained ea...MediumQ33**Section A**
Extracts from a company's statement of financial position show:
Ordinary share capital: $200,000
Retai...MediumQ34**Section A**
A company has an operating profit (Profit Before Interest and Tax) of $120,000. Its finance costs for ...EasyQ35**Section A**
Which of the following actions would directly improve a company's working capital cycle (i.e., shorten...MediumQ36**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...MediumQ37**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...EasyQ38**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...MediumQ39**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...EasyQ40**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...HardQ41**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...MediumQ42**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...HardQ43**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...HardQ44**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...EasyQ45**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...MediumQ46**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...MediumQ47**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...MediumQ48**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...HardQ49**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...EasyQ50**Section B - Case 1: Group Consolidations**
*Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of t...EasyQ51**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...HardQ52**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...MediumQ53**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...EasyQ54**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...MediumQ55**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...EasyQ56**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...MediumQ57**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...EasyQ58**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...EasyQ59**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...EasyQ60**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...MediumQ61**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...MediumQ62**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...EasyQ63**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...MediumQ64**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...MediumQ65**Section B - Case 2: Single Entity Accounts & Ratio Analysis**
*Scenario: Horizon Wind Farms Ltd has prepared draft...Medium