ExpertACCA
ACCA FA — Financial Accounting Practice Exam 3
65 free questions · No sign-up required to browse
A complete mock exam replication for ACCA FA, mirroring live computer-based testing parameters. Covers double-entry accounting, ledger adjustments, group consolidations, and financial statement production. Features unique scenarios including heavy manufacturing, tech startups, NGOs, agriculture, service firms, public utilities, and cross-border multinationals.
65
Questions
Mixed
Difficulty
50%
Pass mark
Difficulty breakdown
Easy(22)
Medium(36)
Hard(7)
Topics covered
Browse all topics →Bank ReconciliationsBooks of Prime EntryConsolidated Financial StatementsContext and Purpose of Financial ReportingControl Account ReconciliationsCorrection of ErrorsDepreciationDouble-entry BookkeepingEvents After the Reporting PeriodGoing ConcernGovernance and ResponsibilitiesGroup ConsolidationsIntangible AssetsInterpretation of Financial StatementsInventory ValuationLimited Company AccountsPayroll AccountingPetty CashProvisions and ContingenciesQualitative CharacteristicsRatio AnalysisReceivables and AllowancesRegulatory FrameworkSingle Entity AccountsSole Trader AccountsStatement of Cash FlowsSupplier Statement ReconciliationSuspense Accounts and ErrorsTangible Non-Current AssetsTrial Balance and Errors
Sample questions
Q01Easy2 marks
GlobalWater NGO, a non-governmental organization providing clean water solutions, is preparing its annual financial statements. Which of the following best describes the primary purpose of GlobalWater's financial statements?
Q02Medium2 marks
NexusTech, a cross-border multinational software company, operates in 15 different countries. Why is it important for NexusTech to adopt International Financial Reporting Standards (IFRS) rather than relying solely on local GAAP for its consolidated accounts?
Q03Easy2 marks
In the context of a large public utility company, which of the following is strictly the responsibility of the external auditor rather than the board of directors?
Q04Medium2 marks
Quantum AI, a tech startup, is developing a revolutionary algorithm. The directors want to capitalize $2 million of research costs as an intangible asset to make the statement of financial position look stronger. Which fundamental qualitative characteristic of financial information would be breached if they do this?
Q05Medium2 marks
AgriGrow, a large agricultural firm, recently changed its method of depreciating tractors from the straight-line method to the reducing balance method to better reflect the pattern of consumption of the tractors' economic benefits. Which qualitative characteristic is primarily supported by ensuring this change is properly disclosed in the notes to the financial statements?
Ready to Practice the full exam?
All 65 questions with worked answers, mark schemes, and AI tutoring.
All questions (65)
Free to browse · no sign-up requiredQ01GlobalWater NGO, a non-governmental organization providing clean water solutions, is preparing its annual financial s...EasyQ02NexusTech, a cross-border multinational software company, operates in 15 different countries. Why is it important for...MediumQ03In the context of a large public utility company, which of the following is strictly the responsibility of the extern...EasyQ04Quantum AI, a tech startup, is developing a revolutionary algorithm. The directors want to capitalize $2 million of r...MediumQ05AgriGrow, a large agricultural firm, recently changed its method of depreciating tractors from the straight-line meth...MediumQ06Aviation Services Ltd has suffered severe financial difficulties due to a global travel downturn. The directors have ...MediumQ07Titan Heavy Manufacturing sells steel components to BuildCo for $15,000. BuildCo also supplies Titan with specialized...MediumQ08EcoFarm Ltd returns $1,200 worth of defective organic fertilizer to its supplier, GreenChem. In which book of prime e...EasyQ09A tech startup's payroll records for the month show: Gross wages $50,000; Income tax deducted (PAYE) $10,000; Employe...MediumQ10A service firm operates a petty cash imprest system with an imprest amount of $300. At the end of the month, the pett...EasyQ11TechNova holds 1,000 units of a specialized microchip in inventory. The chips cost $50 each to manufacture. Due to a ...MediumQ12BioHealth Pharma has spent $500,000 researching a new vaccine and a further $800,000 on the development phase. The de...EasyQ13Metro Utilities owns a headquarters building originally purchased for $2,000,000. Accumulated depreciation to date is...MediumQ14LogisticsPro purchased a delivery truck for $60,000 on 1 January 20X1. It was initially depreciated on a straight-lin...HardQ15At 1 January 20X8, TradeCorp had an allowance for receivables of $12,000. At 31 December 20X8, total trade receivable...HardQ16A company's payables ledger control account shows a balance of $85,000. A supplier statement from SteelWorks Ltd show...MediumQ17HeavyMachinery Co sells industrial equipment with a one-year warranty. Based on past experience, 5% of equipment sold...MediumQ18A public utility company is facing a lawsuit from a local community group for environmental damage. The company's law...EasyQ19A company's cash book shows a debit balance of $12,400. The bank statement shows a credit balance of $11,900. The dif...MediumQ20A bookkeeper extracted a trial balance that failed to agree. The debits exceeded the credits by $4,500, so a suspense...MediumQ21Draft net profit for the year is $150,000. It is subsequently discovered that a purchase of machinery for $20,000 was...HardQ22Which TWO of the following errors would NOT cause the trial balance totals to disagree?MediumQ23The receivables ledger control account shows a balance of $45,600. The total of the individual customer balances in t...MediumQ24A sole trader started the year with opening capital of $50,000. During the year, they introduced a personal vehicle w...EasyQ25A limited company issues 100,000 ordinary shares of $0.50 nominal value at a price of $1.20 per share. What is the co...MediumQ26In preparing a statement of cash flows using the indirect method, a company has a profit before tax of $200,000. Duri...MediumQ27Which of the following items would be classified under 'Investing Activities' in a statement of cash flows?EasyQ28A company's year-end is 31 December 20X5. On 15 January 20X6, before the financial statements are authorized for issu...MediumQ29Alpha Co owns 40% of the voting shares of Beta Co. Alpha Co also has the contractual right to appoint 4 of the 5 dire...MediumQ30During the year, Parent Co sold goods to Sub Co for $120,000. Parent Co applies a mark-up of 20% on cost. At the year...HardQ31In a consolidated statement of financial position, how are intra-group receivable and payable balances treated?EasyQ32A company has Profit Before Interest and Tax (PBIT) of $450,000. Its total assets are $3,500,000 and its current liab...MediumQ33A retail company's gross profit margin has fallen from 40% last year to 32% this year, despite sales volume remaining...MediumQ34A company has Cost of Sales of $1,460,000 for the year. Its opening inventory was $200,000 and closing inventory is $...MediumQ35Which TWO of the following are valid limitations of using ratio analysis to interpret financial statements?MediumQ36SCENARIO: On 1 January 20X5, Horizon Renewables (a public utility) acquired 80% of the equity share capital of WindTe...MediumQ37SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value w...EasyQ38SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value w...MediumQ39SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value w...HardQ40SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value w...MediumQ41SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value w...MediumQ42SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value w...EasyQ43SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value w...MediumQ44SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value w...MediumQ45SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value w...MediumQ46SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value w...MediumQ47SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value w...EasyQ48SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value w...HardQ49SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value w...MediumQ50SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value w...EasyQ51SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...EasyQ52SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...MediumQ53SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...EasyQ54SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...MediumQ55SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...EasyQ56SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...MediumQ57SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...EasyQ58SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...EasyQ59SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...EasyQ60SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...HardQ61SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...MediumQ62SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...EasyQ63SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...MediumQ64SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...EasyQ65SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the y...Easy