ACCA FA Cheat Sheet: Double Entry, Financial Statements and Key Adjustments

ExpertMinds Editorial·3 June 2026·7 min read

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Key fact:FA exam: on-demand CBE · 100 marks · 2 hours · Sections A, B (OT), Section C (constructed response). Pass mark 50%. Same format as MA.

Accounting Equation and Double Entry

Element	Debit increases	Credit increases
Assets	✓
Liabilities		✓
Equity / Capital		✓
Income / Revenue		✓
Expenses	✓

Statement of Financial Position Structure

Section	Contents
Non-current assets	PPE, intangibles, investments
Current assets	Inventories, receivables, cash
Equity	Share capital, share premium, retained earnings
Non-current liabilities	Long-term borrowings, deferred tax
Current liabilities	Payables, accruals, short-term borrowings

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Common Adjustments

Adjustment	DR	CR
Accrual (expense incurred, not yet paid)	Expense (P&L)	Accruals (liability, SoFP)
Prepayment (paid in advance)	Prepayments (asset, SoFP)	Expense (P&L)
Depreciation (straight-line)	Depreciation expense	Accumulated depreciation
Irrecoverable debt write-off	Irrecoverable debt expense	Trade receivables
Allowance for doubtful debts increase	Doubtful debt expense	Allowance for receivables
Closing inventory recognition	Inventory (SoFP)	Cost of sales (P&L)

Inventory Valuation Methods

Method	How it works	Effect on profit in rising prices
FIFO	Oldest items sold first	Higher profit (lower COGS), higher closing inventory
AVCO	Weighted average cost recalculated after each receipt	Intermediate profit

Watch out:IAS 2 prohibits LIFO (Last-In First-Out) for IFRS reporters. Never use LIFO in your FA answer — it will be wrong regardless of the numbers. The examiner occasionally tests whether candidates know this prohibition.

Build speed on FA journal entries

FA questions reward automatic recall of double entry. Practice regularly to build speed.

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Element

Debit increases

Credit increases

Assets

✓

Liabilities

✓

Equity / Capital

✓

Income / Revenue

✓

Expenses

✓

Statement of Financial Position Structure

Section	Contents
Non-current assets	PPE, intangibles, investments
Current assets	Inventories, receivables, cash
Equity	Share capital, share premium, retained earnings
Non-current liabilities	Long-term borrowings, deferred tax
Current liabilities	Payables, accruals, short-term borrowings

Practice ACCA questions while you read

Questions graded, hints, and explained.

Common Adjustments

Adjustment	DR	CR
Accrual (expense incurred, not yet paid)	Expense (P&L)	Accruals (liability, SoFP)
Prepayment (paid in advance)	Prepayments (asset, SoFP)	Expense (P&L)
Depreciation (straight-line)	Depreciation expense	Accumulated depreciation
Irrecoverable debt write-off	Irrecoverable debt expense	Trade receivables
Allowance for doubtful debts increase	Doubtful debt expense	Allowance for receivables
Closing inventory recognition	Inventory (SoFP)	Cost of sales (P&L)

Inventory Valuation Methods

Method	How it works	Effect on profit in rising prices
FIFO	Oldest items sold first	Higher profit (lower COGS), higher closing inventory
AVCO	Weighted average cost recalculated after each receipt	Intermediate profit

Build speed on FA journal entries

FA questions reward automatic recall of double entry. Practice regularly to build speed.