ICAEW ACA Accounting Exam fully solved & updated
2025(latest version verified for accuracy)| 2026 Latest!!
Accounting equation
Assets = Liability + Capital
Cost of Sales/Inventory Equation
Opening inv. + Purchases - Closing inventory
Types of discounts
• Trade (Bulk Buy)
• Early settlement (Prompt)
Total Staff Costs Equation
Gross salaries + Employer's NICs
Components of Gross Salary
• Net Salary
• Income tax (PAYE)
• National Insurance
,Conceptual Framework
Sets out the concepts that underline the preparation & presentation of
financial statements.
Objective of Financial Statements
To provide information about the reporting entity, that is useful to a
wide variety of users in making economic decisions about an entity.
Qualitative characteristics of Conceptual Framework
• Relevance
• Faithful Representation
, Ways of enhancing Qualitative characteristics
• Comparability
• Verifiability
• Timelines
• Understandability
Accruals concept
It requires that transactions and events are recognised when they
occur, not when cash is received or paid.
Going concern concept
• The entity is viewed as continuing its operations for the foreseeable
future.
• Assumption that there is no intention or necessity to liquidate
or curtail materially its operations.
2025(latest version verified for accuracy)| 2026 Latest!!
Accounting equation
Assets = Liability + Capital
Cost of Sales/Inventory Equation
Opening inv. + Purchases - Closing inventory
Types of discounts
• Trade (Bulk Buy)
• Early settlement (Prompt)
Total Staff Costs Equation
Gross salaries + Employer's NICs
Components of Gross Salary
• Net Salary
• Income tax (PAYE)
• National Insurance
,Conceptual Framework
Sets out the concepts that underline the preparation & presentation of
financial statements.
Objective of Financial Statements
To provide information about the reporting entity, that is useful to a
wide variety of users in making economic decisions about an entity.
Qualitative characteristics of Conceptual Framework
• Relevance
• Faithful Representation
, Ways of enhancing Qualitative characteristics
• Comparability
• Verifiability
• Timelines
• Understandability
Accruals concept
It requires that transactions and events are recognised when they
occur, not when cash is received or paid.
Going concern concept
• The entity is viewed as continuing its operations for the foreseeable
future.
• Assumption that there is no intention or necessity to liquidate
or curtail materially its operations.
