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100+ Free ACCA FA Practice Questions

Pass your ACCA Applied Knowledge — Financial Accounting (FA) exam on the first try — instant access, no signup required.

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A business has accrued electricity of $250 at the year end that has not yet been invoiced or paid. What is the effect on the financial statements?

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Key Facts: ACCA FA Exam

2 hours

Computer-Based Exam

ACCA FA/FFA Exam Structure

50%

Pass Mark

ACCA Exam Regulations

35 + 2

OT Questions plus MTQs

ACCA FA/FFA Exam Structure

100

Total Marks

ACCA FA/FFA Syllabus

A-H

Syllabus Areas

ACCA FA Syllabus and Study Guide

IFRS

Reporting Framework

ACCA FA Syllabus and Study Guide

ACCA Financial Accounting (FA) is a two-hour, on-demand computer-based exam with a 50% pass mark. Section A is 35 two-mark objective test questions (70 marks) and Section B is two 15-mark multi-task questions (30 marks) covering accounts preparation and simple consolidations. The syllabus spans areas A to H: context and purpose of financial reporting, qualitative characteristics, double entry and accounting systems, recording transactions, preparing a trial balance, preparing basic financial statements, preparing simple consolidated financial statements, and interpretation of financial statements. FA uses IFRS and the IASB Conceptual Framework, and is also offered as Foundations paper FFA.

Sample ACCA FA Practice Questions

Try these sample questions to test your ACCA FA exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following best describes the primary purpose of financial reporting under the IASB Conceptual Framework?
A.To provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources
B.To calculate the amount of tax a company must pay to the tax authority
C.To ensure all employees receive their salaries on time
D.To set the market price of the entity's shares on the stock exchange
Explanation: The IASB Conceptual Framework states that the objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions relating to providing resources to the entity.
2According to the IASB Conceptual Framework, the two fundamental qualitative characteristics of useful financial information are:
A.Comparability and timeliness
B.Relevance and faithful representation
C.Prudence and consistency
D.Materiality and going concern
Explanation: The Conceptual Framework identifies relevance and faithful representation as the two fundamental qualitative characteristics. Information must be both relevant to users' decisions and faithfully represent the substance of what it purports to depict.
3A business purchases goods on credit for $3,000. What is the correct double-entry to record this transaction?
A.Debit Trade payables $3,000; Credit Purchases $3,000
B.Debit Cash $3,000; Credit Purchases $3,000
C.Debit Purchases $3,000; Credit Trade payables $3,000
D.Debit Purchases $3,000; Credit Cash $3,000
Explanation: Buying goods on credit increases purchases (an expense, debit) and increases trade payables (a liability, credit). The credit purchase creates an obligation to pay the supplier later, so no cash moves now.
4The accounting equation is most accurately expressed as:
A.Assets = Capital - Liabilities
B.Capital = Assets + Liabilities
C.Liabilities = Assets + Capital
D.Assets = Capital + Liabilities
Explanation: The accounting equation states that an entity's assets are financed by its owners (capital) and by external parties (liabilities), so Assets = Capital + Liabilities. It always balances because every transaction affects at least two elements.
5Under the IASB Conceptual Framework, which underlying assumption is made when preparing financial statements unless management intends to liquidate the entity or cease trading?
A.Going concern
B.Accruals
C.Prudence
D.Materiality
Explanation: Financial statements are normally prepared on the going concern basis, assuming the entity will continue in operation for the foreseeable future. If management intends or needs to liquidate or cease trading, a different (break-up) basis must be used.
6A trial balance is extracted and the total of debit balances exceeds the total of credit balances by $450. Pending investigation, the difference is posted to which account?
A.Drawings account
B.Suspense account
C.Capital account
D.Bank account
Explanation: When a trial balance does not balance, the difference is entered into a suspense account so the trial balance balances temporarily. The suspense account is then cleared once the errors causing the imbalance are identified and corrected.
7Which of the following errors would NOT be revealed by extracting a trial balance?
A.A debit entry of $200 recorded but the credit entry omitted
B.A balance of $200 listed on the wrong side of the trial balance
C.A purchase of $200 completely omitted from the books
D.A debit balance of $200 transposed and recorded as $20
Explanation: An error of complete omission leaves the trial balance in balance because neither the debit nor the credit was recorded. Errors of omission, commission, principle, original entry, compensating and reversal of entries do not affect trial balance agreement.
8A company's statement of financial position shows non-current assets of $80,000, current assets of $30,000 and current liabilities of $18,000. What is its working capital?
A.$48,000
B.$62,000
C.$92,000
D.$12,000
Explanation: Working capital equals current assets less current liabilities: $30,000 - $18,000 = $12,000. Non-current assets are excluded because working capital measures short-term liquidity, the funds available to meet day-to-day obligations.
9Under IAS 2 Inventories, inventory should be measured at:
A.The lower of cost and net realisable value
B.The higher of cost and net realisable value
C.Historical cost only
D.Selling price less a standard mark-up
Explanation: IAS 2 requires inventory to be valued at the lower of cost and net realisable value (NRV). NRV is the estimated selling price in the ordinary course of business less the estimated costs of completion and the costs necessary to make the sale.
10At the year end a business has closing inventory that cost $5,000 but which, due to damage, can only be sold for $3,200 after incurring $300 of repair costs. At what value should this inventory be included in the financial statements?
A.$3,200
B.$2,900
C.$5,000
D.$3,500
Explanation: Net realisable value is selling price $3,200 less costs to make the sale $300 = $2,900. Since NRV $2,900 is below cost $5,000, IAS 2 requires the lower figure of $2,900 to be used.

About the ACCA FA Exam

ACCA FA (Financial Accounting), part of the Applied Knowledge level, tests the principles of financial accounting under the IFRS framework: the conceptual framework, double entry, recording transactions, the trial balance, preparing basic and simple consolidated financial statements, and interpretation. It is a two-hour, purely objective computer-based exam.

Questions

37 scored questions

Time Limit

2 hours (120 minutes)

Passing Score

50%

Exam Fee

ACCA exam entry fee set per session and region; FA is also offered as Foundations paper FFA, before local taxes and subscription (ACCA (Association of Chartered Certified Accountants))

ACCA FA Exam Content Outline

Section A and B

Context and purpose of financial reporting (Area A)

The scope and purpose of financial statements, types of business entity, users and stakeholders, governance, and the main elements of financial reports under the IFRS framework.

Section A and B

Qualitative characteristics of financial information (Area B)

Fundamental characteristics of relevance and faithful representation, enhancing characteristics, and the underlying assumptions and accounting concepts in the IASB Conceptual Framework.

Section A and B

Use of double-entry and accounting systems (Area C)

Double-entry bookkeeping, the accounting equation, ledgers, books of prime entry, source documents, sales and purchase tax, and the role of computerised systems.

Section A and B

Recording transactions and events (Area D)

Sales and purchases, cash, inventory under IAS 2, tangible and intangible non-current assets, depreciation, accruals and prepayments, receivables, payables, provisions, and capital structure.

Section A and B

Preparing a trial balance (Area E)

Extracting a trial balance, correction of errors, the suspense account, control accounts and reconciliations, and bank reconciliations.

Section A and B

Preparing basic financial statements (Area F)

Statements of financial position, statements of profit or loss and other comprehensive income, disclosure notes, events after the reporting period, statements of cash flows, and incomplete records.

Section B multi-task question

Preparing simple consolidated financial statements (Area G)

Subsidiaries and associates, goodwill, non-controlling interests, intra-group balances and unrealised profit, and the equity method for associates.

Section B multi-task question

Interpretation of financial statements (Area H)

The purpose of analysis, profitability, liquidity, efficiency and gearing ratios, investor ratios, and the limitations of ratio analysis.

How to Pass the ACCA FA Exam

What You Need to Know

  • Passing score: 50%
  • Exam length: 37 questions
  • Time limit: 2 hours (120 minutes)
  • Exam fee: ACCA exam entry fee set per session and region; FA is also offered as Foundations paper FFA, before local taxes and subscription

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

ACCA FA Study Tips from Top Performers

1Drill the double-entry mechanics until they are automatic, because Sections A and B both rely on accurate debits and credits.
2Learn the IASB Conceptual Framework definitions of asset, liability, income, and expense word for word.
3Practise full proformas for the statement of financial position, profit or loss, and cash flows under time pressure.
4Master the standard consolidation workings: goodwill, non-controlling interest, intra-group balances, and unrealised profit.
5Memorise the key ratios and what they tell you, then practise interpreting them in short scenario questions.
6Complete at least two full timed two-hour mock CBEs so your pacing across 35 OT questions and two MTQs is reliable.

Frequently Asked Questions

What is the format of the ACCA FA exam?

ACCA FA is a two-hour computer-based exam with two sections. Section A contains 35 objective test questions worth two marks each, and Section B contains two multi-task questions worth 15 marks each, giving 100 marks in total.

What is the pass mark for ACCA FA?

The pass mark for ACCA FA, like every ACCA exam, is 50%. Candidates need 50 out of the 100 available marks across Sections A and B to pass.

What does the ACCA FA syllabus cover?

FA covers syllabus areas A to H: context and purpose of financial reporting, qualitative characteristics, double entry and accounting systems, recording transactions, preparing a trial balance, preparing basic financial statements, preparing simple consolidated financial statements, and interpretation of financial statements.

Which accounting framework does ACCA FA use?

ACCA FA is based on International Financial Reporting Standards (IFRS) and the IASB Conceptual Framework, including standards such as IAS 2 Inventories, IAS 16 Property, Plant and Equipment, IAS 7 Statement of Cash Flows, and IFRS 3 Business Combinations.

Is ACCA FA the same as FFA?

Yes. The Financial Accounting exam is offered as FA within the ACCA Qualification Applied Knowledge level and as FFA within the Foundations in Accountancy programme. The syllabus, structure, and content are the same.

Can I take ACCA FA on demand?

Yes. FA/FFA is an on-demand computer-based exam, so candidates can book and sit it at an ACCA-approved centre, or via remote on-demand delivery where available, rather than waiting for a fixed exam session.

How long should I study for ACCA FA?

Most candidates spend roughly 130 to 160 hours preparing for an Applied Knowledge exam such as FA, typically over 8 to 12 weeks of part-time study including timed mock exams.

What are the Section B multi-task questions in FA about?

The two 15-mark multi-task questions in Section B test the preparation of financial statements and simple consolidated financial statements, requiring candidates to apply double entry and IFRS principles to longer scenarios.