ICAEW ACA ACCOUNTING FINAL PAPER
2026 COMPLETE QUESTIONS AND
CORRECT ANSWERS
⩥ Revenue expenditure. Answer: Expenses incurred in everyday trading.
⩥ Cost of sales. Answer: Direct costs incurred in selling goods or
services adjusted for movements in inventory.
⩥ Gross profit. Answer: The excess of revenue over cost of sales.
⩥ Other expenses. Answer: All other costs incurred by the business.
⩥ Net profit. Answer: The excess of revenue over total expenses.
⩥ Capital expenditure. Answer: Purchase/improvement of tangible non-
current assets.
⩥ Non-current assets. Answer: Assets used over a period of more than 1
year.
, ⩥ Current assets. Answer: Assets that continually flow through the
business and are generally used within 1 year.
⩥ Intangible assets. Answer: Assets that have no physical existence but
still have an ongoing value to the business.
⩥ Tangible assets. Answer: Physical objects that can be seen/touched.
⩥ Liability. Answer: A present obligation arising from past events,
settlement of which will result in an economic outflow of resources.
⩥ Current liabilities. Answer: Amounts repayable within 1 year.
⩥ Non-current liabilities. Answer: Amounts repayable after more than 1
year.
⩥ Debit. Answer: Money coming in.
⩥ Credit. Answer: Money going out of a bank account.
⩥ Invoice. Answer: A contractual request for payment at a later date.
⩥ Receipt. Answer: Records a cash transaction (payment or sale).
2026 COMPLETE QUESTIONS AND
CORRECT ANSWERS
⩥ Revenue expenditure. Answer: Expenses incurred in everyday trading.
⩥ Cost of sales. Answer: Direct costs incurred in selling goods or
services adjusted for movements in inventory.
⩥ Gross profit. Answer: The excess of revenue over cost of sales.
⩥ Other expenses. Answer: All other costs incurred by the business.
⩥ Net profit. Answer: The excess of revenue over total expenses.
⩥ Capital expenditure. Answer: Purchase/improvement of tangible non-
current assets.
⩥ Non-current assets. Answer: Assets used over a period of more than 1
year.
, ⩥ Current assets. Answer: Assets that continually flow through the
business and are generally used within 1 year.
⩥ Intangible assets. Answer: Assets that have no physical existence but
still have an ongoing value to the business.
⩥ Tangible assets. Answer: Physical objects that can be seen/touched.
⩥ Liability. Answer: A present obligation arising from past events,
settlement of which will result in an economic outflow of resources.
⩥ Current liabilities. Answer: Amounts repayable within 1 year.
⩥ Non-current liabilities. Answer: Amounts repayable after more than 1
year.
⩥ Debit. Answer: Money coming in.
⩥ Credit. Answer: Money going out of a bank account.
⩥ Invoice. Answer: A contractual request for payment at a later date.
⩥ Receipt. Answer: Records a cash transaction (payment or sale).
