ICAEW ACA ACCOUNTING EXAM QUESTIONS WITH COMPLETE
SOLUTIONS GUARANTEED PASS BRAND NEW 2025
Accounting - ANSWER - >A way of recording, analyzing and
summarizing transactions of an entity.
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
• Integrity
Business entity concept - ANSWER - >A business is a separate
entity from its owner.
SOLUTIONS GUARANTEED PASS BRAND NEW 2025
Accounting - ANSWER - >A way of recording, analyzing and
summarizing transactions of an entity.
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
• Integrity
Business entity concept - ANSWER - >A business is a separate
entity from its owner.
