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100+ Free ICAEW ACA Accounting Practice Questions

ICAEW ACA Certificate Level Accounting (Accounting Fundamentals) practice questions are available now; exam metadata is being verified.

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Which document is issued by a supplier to a customer to correct an overcharge or to record returns of goods previously invoiced?

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2026 Statistics

Key Facts: ICAEW ACA Accounting Exam

1.5 hrs

Exam Duration

ICAEW Certificate Level exams

55%

Pass Mark

ICAEW Certificate Level exams

~25

Objective-Test Questions

ICAEW Accounting Fundamentals exam guide

60/40

Objective vs Scenario Marks

ICAEW Accounting Fundamentals exam guide

On demand

Computer-Based Booking

ICAEW Certificate Level exams

ICAEW ACA Accounting (Accounting Fundamentals under the Next Generation ACA) is a Certificate Level module with a 1.5-hour, on-demand, computer-based exam and a 55% pass mark. The paper combines objective-test questions (multiple choice, multi-part multiple choice and multiple response) worth about 60% of the marks with structured/scenario-based questions worth about 40%, including preparing financial statements from a trial balance. The syllabus covers maintaining financial records and double entry, recording transactions with accruals, prepayments and irrecoverable debts, preparing sole trader and company financial statements with a basic cash flow, and control accounts, bank reconciliations and adjustments.

Sample ICAEW ACA Accounting Practice Questions

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

1Under the dual aspect (duality) concept underpinning double-entry bookkeeping, every transaction is recorded with equal entries. If a business buys inventory for GBP 2,000 on credit, what is the correct double entry?
A.Debit purchases GBP 2,000; credit trade payables GBP 2,000
B.Debit trade payables GBP 2,000; credit purchases GBP 2,000
C.Debit purchases GBP 2,000; credit cash GBP 2,000
D.Debit inventory GBP 2,000; credit sales GBP 2,000
Explanation: Buying inventory on credit increases an expense/asset (purchases) and increases a liability (trade payables). Expenses are debited and liabilities are credited, so the entry is debit purchases and credit trade payables for GBP 2,000.
2The accounting equation states that assets equal capital plus liabilities. A sole trader has assets of GBP 80,000 and liabilities of GBP 30,000. What is the proprietor's capital?
A.GBP 110,000
B.GBP 50,000
C.GBP 30,000
D.GBP 80,000
Explanation: Rearranging assets = capital + liabilities gives capital = assets − liabilities. So capital = GBP 80,000 − GBP 30,000 = GBP 50,000, representing the owner's residual interest in the business.
3Which of the following best describes a debit entry in the double-entry system?
A.An increase in a liability or income
B.An increase in capital
C.An increase in an asset or expense
D.A decrease in an asset
Explanation: Debits increase assets and expenses and decrease liabilities, income and capital. Credits do the opposite. Recognising that asset and expense increases are debits is fundamental to recording transactions correctly.
4A business sells goods for GBP 600 cash. Which two ledger accounts are affected and how?
A.Debit sales GBP 600; credit cash GBP 600
B.Debit cash GBP 600; credit trade receivables GBP 600
C.Debit trade receivables GBP 600; credit sales GBP 600
D.Debit cash GBP 600; credit sales GBP 600
Explanation: A cash sale increases the cash asset (debit) and increases sales income (credit). The entry is debit cash GBP 600 and credit sales GBP 600. No receivable arises because payment is immediate.
5The going concern concept assumes that a business will:
A.Continue in operation for the foreseeable future
B.Distribute all profits as dividends
C.Value its assets at their break-up value
D.Be sold within the next 12 months
Explanation: Going concern assumes the entity will continue operating for the foreseeable future and has neither the intention nor the need to liquidate or curtail materially the scale of operations. This justifies valuing assets at cost rather than break-up values.
6Which book of prime entry is used to record credit sales before they are posted to the ledgers?
A.The petty cash book
B.The sales day book
C.The journal
D.The cash book
Explanation: The sales day book lists credit sales from sales invoices before totals are posted to the sales account and individual amounts to receivables. Cash sales go through the cash book, and the journal handles non-routine adjustments.
7A trader pays GBP 1,200 from the business bank account to settle a trade payable. What is the double entry?
A.Debit trade payables GBP 1,200; credit purchases GBP 1,200
B.Debit bank GBP 1,200; credit trade payables GBP 1,200
C.Debit trade payables GBP 1,200; credit bank GBP 1,200
D.Debit purchases GBP 1,200; credit bank GBP 1,200
Explanation: Paying a supplier reduces the liability (debit trade payables) and reduces the bank asset (credit bank). The purchase expense was already recorded when the goods were bought on credit, so it is not affected by the payment.
8Under the accruals (matching) concept, revenue and the costs of earning it should be:
A.Recognised whenever the directors choose
B.Ignored until the goods are physically delivered
C.Recognised only when cash is received or paid
D.Matched and recognised in the same accounting period
Explanation: The accruals concept requires income and the related expenses to be recognised in the period to which they relate, regardless of when cash changes hands, so that profit reflects the activity of the period.
9A business is registered for VAT. It sells goods with a net value of GBP 1,000 plus VAT at 20%. What amount is recorded as sales revenue and what is the VAT?
A.Sales GBP 1,000; VAT GBP 200 credited to the VAT account
B.Sales GBP 1,200; VAT GBP 200 debited to the VAT account
C.Sales GBP 800; VAT GBP 200
D.Sales GBP 1,200; VAT nil
Explanation: Output VAT collected on a sale is a liability owed to HMRC, not income. Sales revenue is the net GBP 1,000, the customer is invoiced GBP 1,200, and the GBP 200 output VAT is credited to the VAT control account.
10Which of the following is an example of capital expenditure rather than revenue expenditure?
A.Repairs to a delivery van
B.Purchase of a new delivery van
C.Fuel used in the delivery van
D.Road tax for the delivery van
Explanation: Capital expenditure is spending to acquire or improve non-current assets that bring benefit over more than one period, such as buying a new van. Repairs, fuel and road tax are running costs and are revenue expenditure charged to profit or loss.

About the ICAEW ACA Accounting Practice Questions

Verified exam format metadata for ICAEW ACA Certificate Level Accounting (Accounting Fundamentals) is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.