ExpertACCA
ACCA FA — Financial Accounting Practice Exam 2
65 free questions · No sign-up required to browse
A complete mock exam replication for ACCA Financial Accounting (FA). This 2-hour, 100-mark assessment covers double-entry accounting, ledger adjustments, group consolidations, and financial statement production. Features diverse business scenarios including tech startups, heavy manufacturing, and agriculture.
65
Questions
Mixed
Difficulty
50%
Pass mark
Difficulty breakdown
Easy(22)
Medium(36)
Hard(7)
Topics covered
Browse all topics →Sample questions
Q01Easy2 marks
BioGenix Ltd, a biotech startup, is deciding whether to disclose a highly uncertain contingent liability regarding a pending patent infringement lawsuit. Which fundamental qualitative characteristic of financial information primarily dictates that this information, if material, must be disclosed to ensure the financial statements are complete, neutral, and free from error?
Q02Easy2 marks
Which of the following bodies is primarily responsible for issuing International Financial Reporting Standards (IFRS)?
Q03Medium2 marks
Which of the following are the primary responsibilities of the directors of a limited liability company? (Select all that apply)
Q04Medium2 marks
Titanium Forge Co, a heavy manufacturing firm, recently incurred the following costs:
- $50,000 for a major overhaul of a blast furnace that extends its useful life by 5 years.
- $5,000 for routine monthly maintenance of the furnace.
- $12,000 to repaint the factory exterior.
What is the total amount of capital expenditure?
Q05Medium2 marks
A company makes a 1 for 4 bonus issue of shares. The nominal value of the shares is $1. The company wishes to utilize its share premium account for this purpose. What is the correct double-entry to record this transaction?
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All questions (65)
Free to browse · no sign-up requiredQ01BioGenix Ltd, a biotech startup, is deciding whether to disclose a highly uncertain contingent liability regarding a ...EasyQ02Which of the following bodies is primarily responsible for issuing International Financial Reporting Standards (IFRS)?EasyQ03Which of the following are the primary responsibilities of the directors of a limited liability company? (Select all ...MediumQ04Titanium Forge Co, a heavy manufacturing firm, recently incurred the following costs:
1. $50,000 for a major overhaul...MediumQ05A company makes a 1 for 4 bonus issue of shares. The nominal value of the shares is $1. The company wishes to utilize...MediumQ06A business sells goods for $1,740, which is inclusive of sales tax at 20%. What is the net sales revenue amount that ...MediumQ07Global Wholesale Distributors offers a 10% trade discount for bulk orders and a 5% settlement discount if payment is ...HardQ08A company operates a petty cash imprest system with a float of $300. At the end of the month, the petty cash box cont...MediumQ09According to IAS 2 Inventories, how should inventory be valued?EasyQ10During a period of consistently rising prices (inflation), which inventory valuation method will result in the highes...MediumQ11A company purchases a machine on 1 April 20X1 for $60,000. It has an estimated useful life of 5 years and a residual ...MediumQ12A property was purchased for $200,000 and has accumulated depreciation of $40,000. The company decides to revalue the...HardQ13Under IAS 38 Intangible Assets, which of the following criteria MUST be met for development costs to be capitalized? ...MediumQ14A company pays its annual rent of $24,000 in arrears on 31 March each year. The company's financial year end is 31 De...MediumQ15A company pays an annual insurance premium of $12,000 on 1 September 20X2 for the year ending 31 August 20X3. The com...EasyQ16At the start of the year, the allowance for receivables was $5,000. During the year, an irrecoverable debt of $2,000 ...HardQ17Under IAS 37 Provisions, Contingent Liabilities and Contingent Assets, which of the following conditions is NOT requi...EasyQ18A company is being sued for $500,000. The company's lawyers advise that it is possible (a 30% chance) that the compan...MediumQ19A company's cash book shows a debit balance of $4,500. The bank statement shows a credit balance of $5,200. The diffe...MediumQ20A supplier sends a statement showing a balance due of $3,400. Your payables ledger account for this supplier shows a ...MediumQ21A trial balance fails to agree. The debit column totals $150,000 and the credit column totals $152,000. A suspense ac...HardQ22Which of the following describes an 'error of principle'?EasyQ23A company's draft profit is $50,000. It is discovered that closing inventory was overstated by $5,000, and a deprecia...MediumQ24A business has incomplete records. Sales for the year were $120,000. The business operates with a uniform gross profi...HardQ25A shopkeeper suspects cash has been stolen from the till. Opening cash balance was $200. Cash sales banked during the...MediumQ26When preparing a statement of cash flows using the indirect method, how should an increase in trade receivables and a...MediumQ27A company's Property, Plant and Equipment (PPE) had a carrying amount of $500,000 at the start of the year and $620,0...HardQ28Which of the following can the Share Premium account legally be used for?EasyQ29A company declares a final dividend of 5 cents per share on 15 January 20X6. The company's year-end was 31 December 2...MediumQ30A sole trader takes goods from inventory for personal use. The goods cost $400 and have a selling price of $600. What...MediumQ31Which of the following are considered 'adjusting events' under IAS 10 Events after the Reporting Period? (Select all ...MediumQ32Under IFRS 10 Consolidated Financial Statements, which of the following is the primary criterion for determining whet...EasyQ33How is an investment in an associate accounted for in the consolidated financial statements?EasyQ34A company has an Operating Profit (Profit before interest and tax) of $150,000. Its Total Assets are $1,200,000 and C...MediumQ35Which of the following would cause a company's gearing ratio (Debt / Equity) to increase?MediumQ36Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...EasyQ37Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...EasyQ38Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...MediumQ39Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...EasyQ40Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...MediumQ41Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...EasyQ42Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...MediumQ43Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...MediumQ44Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...MediumQ45Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...MediumQ46Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...HardQ47Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...EasyQ48Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...MediumQ49Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...EasyQ50Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's r...EasyQ51Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...MediumQ52Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...EasyQ53Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...EasyQ54Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...MediumQ55Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...EasyQ56Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...EasyQ57Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...EasyQ58Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...MediumQ59Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...MediumQ60Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...MediumQ61Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...MediumQ62Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...EasyQ63Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...MediumQ64Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...MediumQ65Scenario: AgriGrow Co trial balance at 30 Sept 20X6: Revenue $2,500,000; Purchases $1,400,000; Opening Inventory $300...Medium