ICAEW ACA Accounting.pdf file:///C:/Users/HP/Desktop/New%20folder/ICAEW%20ACA%20Acc
ICAEW ACA Accounting Questions & Answers
1. Accounting
Answer A way of recording, analysing and summarising transactions of anentity.
2. Statement of Profit and Loss
Answer It reflects the performance of a business over aperiod of time.
3. Statement of Financial Position
Answer It reflects the position of a business at a pointin time.
4. Users of Accounting
Answer Any organisation/business/individual who needs to keeptrack of their
income, expenses, assets and liabilities.
5. Types of Business Entity
Answer • Sole trader
• Partnership
1/6
1 of 19 12/16/2024, 5:22
,ICAEW ACA Accounting.pdf file:///C:/Users/HP/Desktop/New%20folder/ICAEW%20ACA%20Acc
• Limited Liability Companies
6. SOFP
Answer A list of assets and liabilities of the business.
7. SPL
Answer The revenue and expense of a business for the accounting period.
8. Purpose of SOFP
Answer To show the total value of the net assets of the business atthe end of a
period.
9. Purpose of SPL
Answer To show the amount of profit and loss that the business hasmade during
that period.
10. Stakeholders for financial information
Answer • Managers/Directors
• Owners of the company
2/6
2 of 19 12/16/2024, 5:22
,ICAEW ACA Accounting.pdf file:///C:/Users/HP/Desktop/New%20folder/ICAEW%20ACA%20Acc
• Trade contracts
• Finance providers
•HMRC
11. Capital Expenditure
Answer Expenditure which results in the acquisition of non-cur-rent assets or an
improvement or enhancement of their earning capacity (>1yr) (NCA)
12. 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)
13. Code of Ethics (IFAC)
Answer • Professional Behaviour
• Objectivity
• Professional Competence & due care
• Confidentiality
• Integrity
3/6
3 of 19 12/16/2024, 5:22
ICAEW ACA Accounting Questions & Answers
1. Accounting
Answer A way of recording, analysing and summarising transactions of anentity.
2. Statement of Profit and Loss
Answer It reflects the performance of a business over aperiod of time.
3. Statement of Financial Position
Answer It reflects the position of a business at a pointin time.
4. Users of Accounting
Answer Any organisation/business/individual who needs to keeptrack of their
income, expenses, assets and liabilities.
5. Types of Business Entity
Answer • Sole trader
• Partnership
1/6
1 of 19 12/16/2024, 5:22
,ICAEW ACA Accounting.pdf file:///C:/Users/HP/Desktop/New%20folder/ICAEW%20ACA%20Acc
• Limited Liability Companies
6. SOFP
Answer A list of assets and liabilities of the business.
7. SPL
Answer The revenue and expense of a business for the accounting period.
8. Purpose of SOFP
Answer To show the total value of the net assets of the business atthe end of a
period.
9. Purpose of SPL
Answer To show the amount of profit and loss that the business hasmade during
that period.
10. Stakeholders for financial information
Answer • Managers/Directors
• Owners of the company
2/6
2 of 19 12/16/2024, 5:22
,ICAEW ACA Accounting.pdf file:///C:/Users/HP/Desktop/New%20folder/ICAEW%20ACA%20Acc
• Trade contracts
• Finance providers
•HMRC
11. Capital Expenditure
Answer Expenditure which results in the acquisition of non-cur-rent assets or an
improvement or enhancement of their earning capacity (>1yr) (NCA)
12. 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)
13. Code of Ethics (IFAC)
Answer • Professional Behaviour
• Objectivity
• Professional Competence & due care
• Confidentiality
• Integrity
3/6
3 of 19 12/16/2024, 5:22
