ICAEW ACA Accounting Exam Questions
With Correct Answers
Accounting |- |CORRECT |ANSWER✔✔-A |way |of |recording, |analysing |and |summarising |
transactions |of |an |entity.
Statement |of |Profit |and |Loss |- |CORRECT |ANSWER✔✔-It |reflects |the |performance |of |a |business
|over |a |period |of |time.
Statement |of |Financial |Position |- |CORRECT |ANSWER✔✔-It |reflects |the |position |of |a |business |
at |a |point |in |time.
Users |of |Accounting |- |CORRECT |ANSWER✔✔-Any |organisation/business/individual |who |needs |
to |keep |track |of |their |income, |expenses, |assets |and |liabilities.
Types |of |Business |Entity |- |CORRECT |ANSWER✔✔-• |Sole |trader
• |Partnership
• |Limited |Liability |Companies
SOFP |- |CORRECT |ANSWER✔✔-A |list |of |assets |and |liabilities |of |the |business.
SPL |- |CORRECT |ANSWER✔✔-The |revenue |and |expense |of |a |business |for |the |accounting |
period.
Purpose |of |SOFP |- |CORRECT |ANSWER✔✔-To |show |the |total |value |of |the |net |assets |of |the |
business |at |the |end |of |a |period.
, Purpose |of |SPL |- |CORRECT |ANSWER✔✔-To |show |the |amount |of |profit |and |loss |that |the |
business |has |made |during |that |period.
Stakeholders |for |financial |information |- |CORRECT |ANSWER✔✔-• |Managers/Directors
• |Owners |of |the |company
• |Trade |contracts
• |Finance |providers
•HMRC
Capital |Expenditure |- |CORRECT |ANSWER✔✔-Expenditure |which |results |in |the |acquisition |of |
non-current |assets |or |an |improvement |or |enhancement |of |their |earning |capacity |(>1yr) |(NCA)
Revenue |Expenditure |- |CORRECT |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) |- |CORRECT |ANSWER✔✔-• |Professional |Behaviour
• |Objectivity
• |Professional |Competence |& |due |care
• |Confidentiality
• |Integrity
Business |entity |concept |- |CORRECT |ANSWER✔✔-A |business |is |a |separate |entity |from |its |
owner.
Capital |- |CORRECT |ANSWER✔✔-How |much |the |business |owes |back |to |the |owner.
With Correct Answers
Accounting |- |CORRECT |ANSWER✔✔-A |way |of |recording, |analysing |and |summarising |
transactions |of |an |entity.
Statement |of |Profit |and |Loss |- |CORRECT |ANSWER✔✔-It |reflects |the |performance |of |a |business
|over |a |period |of |time.
Statement |of |Financial |Position |- |CORRECT |ANSWER✔✔-It |reflects |the |position |of |a |business |
at |a |point |in |time.
Users |of |Accounting |- |CORRECT |ANSWER✔✔-Any |organisation/business/individual |who |needs |
to |keep |track |of |their |income, |expenses, |assets |and |liabilities.
Types |of |Business |Entity |- |CORRECT |ANSWER✔✔-• |Sole |trader
• |Partnership
• |Limited |Liability |Companies
SOFP |- |CORRECT |ANSWER✔✔-A |list |of |assets |and |liabilities |of |the |business.
SPL |- |CORRECT |ANSWER✔✔-The |revenue |and |expense |of |a |business |for |the |accounting |
period.
Purpose |of |SOFP |- |CORRECT |ANSWER✔✔-To |show |the |total |value |of |the |net |assets |of |the |
business |at |the |end |of |a |period.
, Purpose |of |SPL |- |CORRECT |ANSWER✔✔-To |show |the |amount |of |profit |and |loss |that |the |
business |has |made |during |that |period.
Stakeholders |for |financial |information |- |CORRECT |ANSWER✔✔-• |Managers/Directors
• |Owners |of |the |company
• |Trade |contracts
• |Finance |providers
•HMRC
Capital |Expenditure |- |CORRECT |ANSWER✔✔-Expenditure |which |results |in |the |acquisition |of |
non-current |assets |or |an |improvement |or |enhancement |of |their |earning |capacity |(>1yr) |(NCA)
Revenue |Expenditure |- |CORRECT |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) |- |CORRECT |ANSWER✔✔-• |Professional |Behaviour
• |Objectivity
• |Professional |Competence |& |due |care
• |Confidentiality
• |Integrity
Business |entity |concept |- |CORRECT |ANSWER✔✔-A |business |is |a |separate |entity |from |its |
owner.
Capital |- |CORRECT |ANSWER✔✔-How |much |the |business |owes |back |to |the |owner.
