ICAEW ACA Accoun ng Exam Ques ons and answers
Updated With complete solu on Updated new!!
2025/2026
Accoun ng - Ans A way of recording, analysing and summarising transac ons of an en ty.
Statement of Profit and Loss - Ans It reflects the performance of a business over a period of
me.
Statement of Financial Posi on - Ans It reflects the posi on of a business at a point in me.
Users of Accoun ng - Ans Any organisa on/business/individual who needs to keep track of
their income, expenses, assets and liabili es.
Types of Business En ty - Ans • Sole trader
• Partnership
• Limited Liability Companies
SOFP - Ans A list of assets and liabili es of the business.
SPL - Ans The revenue and expense of a business for the accoun ng period.
Purpose of SOFP - Ans To show the total value of the net assets of the business at the end of a
period.
Purpose of SPL - Ans To show the amount of profit and loss that the business has made during
that period.
, Stakeholders for financial informa on - Ans • Managers/Directors
• Owners of the company
• Trade contracts
• Finance providers
•HMRC
Capital Expenditure - Ans Expenditure which results in the acquisi on of non-current assets or
an improvement or enhancement of their earning capacity (>1yr) (NCA)
Revenue Expenditure - Ans Expenditure which is incurred either for trade purposes (e.g. items
for resale) or to maintain the exis ng earning capacity of non-current assets (e.g repairing)
Code of Ethics (IFAC) - Ans • Professional Behaviour
• Objec vity
• Professional Competence & due care
• Confiden ality
• Integrity
Business en ty concept - Ans A business is a separate en ty from its owner.
Capital - Ans How much the business owes back to the owner.
Year-end capital Equa on - Ans Bal. at start of year + net profit + capital inj. - drawings
Share capital Equa on - Ans Bal. at start of year + Further investment in shares by new
stakeholders
Updated With complete solu on Updated new!!
2025/2026
Accoun ng - Ans A way of recording, analysing and summarising transac ons of an en ty.
Statement of Profit and Loss - Ans It reflects the performance of a business over a period of
me.
Statement of Financial Posi on - Ans It reflects the posi on of a business at a point in me.
Users of Accoun ng - Ans Any organisa on/business/individual who needs to keep track of
their income, expenses, assets and liabili es.
Types of Business En ty - Ans • Sole trader
• Partnership
• Limited Liability Companies
SOFP - Ans A list of assets and liabili es of the business.
SPL - Ans The revenue and expense of a business for the accoun ng period.
Purpose of SOFP - Ans To show the total value of the net assets of the business at the end of a
period.
Purpose of SPL - Ans To show the amount of profit and loss that the business has made during
that period.
, Stakeholders for financial informa on - Ans • Managers/Directors
• Owners of the company
• Trade contracts
• Finance providers
•HMRC
Capital Expenditure - Ans Expenditure which results in the acquisi on of non-current assets or
an improvement or enhancement of their earning capacity (>1yr) (NCA)
Revenue Expenditure - Ans Expenditure which is incurred either for trade purposes (e.g. items
for resale) or to maintain the exis ng earning capacity of non-current assets (e.g repairing)
Code of Ethics (IFAC) - Ans • Professional Behaviour
• Objec vity
• Professional Competence & due care
• Confiden ality
• Integrity
Business en ty concept - Ans A business is a separate en ty from its owner.
Capital - Ans How much the business owes back to the owner.
Year-end capital Equa on - Ans Bal. at start of year + net profit + capital inj. - drawings
Share capital Equa on - Ans Bal. at start of year + Further investment in shares by new
stakeholders
