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ICAEW ACA Accounting Exam fully
solved & updated (latest version verified
for accuracy)| Latest!!
Accounting - (ANSWER)A way of recording, analysing and summarising
transactions of an entity.
Statement of Profit and Loss - (ANSWER)It reflects the performance of a business
over a period of time.
Statement of Financial Position - (ANSWER)It reflects the position of a business at
a point in time.
Users of Accounting - (ANSWER)Any organisation/business/individual who needs
to keep track of their income, expenses, assets and liabilities.
Types of Business Entity - (ANSWER)• Sole trader
• Partnership
• Limited Liability Companies
SOFP - (ANSWER)A list of assets and liabilities of the business.
SPL - (ANSWER)The revenue and expense of a business for the accounting period.
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Purpose of SOFP - (ANSWER)To show the total value of the net assets of the
business at the end of a period.
Purpose of SPL - (ANSWER)To show the amount of profit and loss that the
business has made during that period.
Stakeholders for financial information - (ANSWER)• Managers/Directors
• Owners of the company
• Trade contracts
• Finance providers
•HMRC
Capital Expenditure - (ANSWER)Expenditure which results in the acquisition of
non-current assets or an improvement or enhancement of their earning capacity
(>1yr) (NCA)
Revenue Expenditure - (ANSWER)Expenditure which is incurred either for trade
purposes (e.g. items for resale) or to maintain the existing earning capacity of
non-current assets (e.g repairing)
Code of Ethics (IFAC) - (ANSWER)• Professional Behaviour
• Objectivity
• Professional Competence & due care
• Confidentiality
ICAEW ACA Accounting Exam fully
solved & updated (latest version verified
for accuracy)| Latest!!
Accounting - (ANSWER)A way of recording, analysing and summarising
transactions of an entity.
Statement of Profit and Loss - (ANSWER)It reflects the performance of a business
over a period of time.
Statement of Financial Position - (ANSWER)It reflects the position of a business at
a point in time.
Users of Accounting - (ANSWER)Any organisation/business/individual who needs
to keep track of their income, expenses, assets and liabilities.
Types of Business Entity - (ANSWER)• Sole trader
• Partnership
• Limited Liability Companies
SOFP - (ANSWER)A list of assets and liabilities of the business.
SPL - (ANSWER)The revenue and expense of a business for the accounting period.
, 2
Purpose of SOFP - (ANSWER)To show the total value of the net assets of the
business at the end of a period.
Purpose of SPL - (ANSWER)To show the amount of profit and loss that the
business has made during that period.
Stakeholders for financial information - (ANSWER)• Managers/Directors
• Owners of the company
• Trade contracts
• Finance providers
•HMRC
Capital Expenditure - (ANSWER)Expenditure which results in the acquisition of
non-current assets or an improvement or enhancement of their earning capacity
(>1yr) (NCA)
Revenue Expenditure - (ANSWER)Expenditure which is incurred either for trade
purposes (e.g. items for resale) or to maintain the existing earning capacity of
non-current assets (e.g repairing)
Code of Ethics (IFAC) - (ANSWER)• Professional Behaviour
• Objectivity
• Professional Competence & due care
• Confidentiality
