ICAEW ACA ACCOUNTING EXAM PAPER
2026 QUESTIONS WITH CORRECT
SOLUTIONS GRADED A+
⩥ 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.
, ⩥ 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
2026 QUESTIONS WITH CORRECT
SOLUTIONS GRADED A+
⩥ 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.
, ⩥ 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
