9/21/25, 7:41 AM ICAEW ACA Accounting Exam fully solved & updated 2025-2026(latest version verified for accuracy)| 2024\2025 Latest!! Flashcard…
ICAEW ACA Accounting Exam fully solved &
updated 2025-2026(latest version verified for
accuracy)| 2024\2025 Latest!!
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Terms in this set (81)
A way of recording, analysing and summarising
Accounting
transactions of an entity.
Statement of Profit and It reflects the performance of a business over a
Loss period of time.
Statement of Financial It reflects the position of a business at a point in time.
Position
Any organisation/business/individual who needs to
Users of Accounting keep track of their income, expenses, assets and
liabilities.
• Sole trader
Types of Business Entity • Partnership
• Limited Liability Companies
SOFP A list of assets and liabilities of the business.
The revenue and expense of a business for the
SPL
accounting period.
To show the total value of the net assets of the
Purpose of SOFP
business at the end of a period.
To show the amount of profit and loss that the
Purpose of SPL
business has made during that period.
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• Managers/Directors
• Owners of the company
Stakeholders for financial
• Trade contracts
information
• Finance providers
•HMRC
Expenditure which results in the acquisition of non-
Capital Expenditure current assets or an improvement or enhancement of
their earning capacity (>1yr) (NCA)
Expenditure which is incurred either for trade
purposes (e.g. items for resale) or to maintain the
Revenue Expenditure
existing earning capacity of non-current assets (e.g
repairing)
• Professional Behaviour
• Objectivity
Code of Ethics (IFAC) • Professional Competence & due care
• Confidentiality
• Integrity
Business entity concept A business is a separate entity from its owner.
Capital How much the business owes back to the owner.
Year-end capital Equation Bal. at start of year + net profit + capital inj. - drawings
Bal. at start of year + Further investment in shares by
Share capital Equation
new stakeholders
Retained Earnings Bal. at start of year + Profit - dividends
Equation
Accounting equation Assets = Liability + Capital
Cost of Sales/Inventory Opening inv. + Purchases - Closing inventory
Equation
• Trade (Bulk Buy)
Types of discounts
• Early settlement (Prompt)
Total Staff Costs Equation Gross salaries + Employer's NICs
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ICAEW ACA Accounting Exam fully solved &
updated 2025-2026(latest version verified for
accuracy)| 2024\2025 Latest!!
Save
Terms in this set (81)
A way of recording, analysing and summarising
Accounting
transactions of an entity.
Statement of Profit and It reflects the performance of a business over a
Loss period of time.
Statement of Financial It reflects the position of a business at a point in time.
Position
Any organisation/business/individual who needs to
Users of Accounting keep track of their income, expenses, assets and
liabilities.
• Sole trader
Types of Business Entity • Partnership
• Limited Liability Companies
SOFP A list of assets and liabilities of the business.
The revenue and expense of a business for the
SPL
accounting period.
To show the total value of the net assets of the
Purpose of SOFP
business at the end of a period.
To show the amount of profit and loss that the
Purpose of SPL
business has made during that period.
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, 9/21/25, 7:41 AM ICAEW ACA Accounting Exam fully solved & updated 2025-2026(latest version verified for accuracy)| 2024\2025 Latest!! Flashcard…
• Managers/Directors
• Owners of the company
Stakeholders for financial
• Trade contracts
information
• Finance providers
•HMRC
Expenditure which results in the acquisition of non-
Capital Expenditure current assets or an improvement or enhancement of
their earning capacity (>1yr) (NCA)
Expenditure which is incurred either for trade
purposes (e.g. items for resale) or to maintain the
Revenue Expenditure
existing earning capacity of non-current assets (e.g
repairing)
• Professional Behaviour
• Objectivity
Code of Ethics (IFAC) • Professional Competence & due care
• Confidentiality
• Integrity
Business entity concept A business is a separate entity from its owner.
Capital How much the business owes back to the owner.
Year-end capital Equation Bal. at start of year + net profit + capital inj. - drawings
Bal. at start of year + Further investment in shares by
Share capital Equation
new stakeholders
Retained Earnings Bal. at start of year + Profit - dividends
Equation
Accounting equation Assets = Liability + Capital
Cost of Sales/Inventory Opening inv. + Purchases - Closing inventory
Equation
• Trade (Bulk Buy)
Types of discounts
• Early settlement (Prompt)
Total Staff Costs Equation Gross salaries + Employer's NICs
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