ACCA FA Questions and Answers (Top
Grade Assured) 2026 Update
Owned and operated by one owner who is liable for the
business - Correct Answers ✅Sole Trader
Two or more owners who share the liability of the business -
Correct Answers ✅Partnership
Separate legal entities - Correct Answers ✅Limited Liability
Company
Presents the main ideas, concepts and principles upon which
all IFRS Standards, and therefore financial statements, are
based. - Correct Answers ✅The framework
Income
Expenses - Correct Answers ✅SPL elements
Assets
Liabilities
Capital - Correct Answers ✅SFP elements
Asset expenditure (SOFP)
Expenses (SOPL) - Correct Answers ✅Classification of
expenditure
,ACCA FA Questions and Answers (Top
Grade Assured) 2026 Update
A present economic resource controlled by the entity as a
result of past events - Correct Answers ✅Asset
Expenditure likely to increase the future earning capability of
the entity - Correct Answers ✅Asset expenditure
A present obligation of the entity to transfer an economic
resource as a result of past events - Correct Answers
✅Liability
The residual interest in the assets of the entity after
deducting all its liabilities - Correct Answers
✅Capital/Equity
Increases in assets, or decreases in liabilities, that result in
increases in equity, other than those relating to contributions
from holders of equity claims - Correct Answers ✅Income
Decreases in assets, or increases in liabilities, that result in a
decrease in equity, other than those relating to distributions
to holders of equity claims - Correct Answers ✅Expense
1. Relevance
2. Faithful Representation - Correct Answers
✅Fundamental Qualitative Characteristics
,ACCA FA Questions and Answers (Top
Grade Assured) 2026 Update
1. Comparability
2. Verifiability
3. Timeliness
4. Understandability - Correct Answers ✅Enhancing
Qualitative Characteristics
If an item's omission or misstatement is likely to change the
perception or understanding of the user of that information. -
Correct Answers ✅Materiality
The economic substance of transactions must be accounted
for, and not just their strict legal form. - Correct Answers
✅Substance over form
Financial statements are presented on the basis that the
entity will continue to trade for the foreseeable future. -
Correct Answers ✅Going Concern
Financial information is recorded and reported separately
from the owner's personal financial information - Correct
Answers ✅The business entity
Transactions are recorded when revenues are earned and
when expenses are incurred. This pays no regard to timing of
cash receipts and payments. - Correct Answers ✅The
accruals basis of accounting
, ACCA FA Questions and Answers (Top
Grade Assured) 2026 Update
The exercise of caution when making judgements under
conditions of uncertainty. - Correct Answers ✅Prudence
Use of the same accounting principles and methods from
year to year. - Correct Answers ✅Consistency
Body with overall responsibility for development, publication
and promotion of IFRS Standards - Correct Answers ✅IFRS
Foundation
Develops and publishes IFRS Standards. - Correct Answers
✅IASB
Assists on queries relating to IFRS Standards. - Correct
Answers ✅IFRS IC
Advises the IASB. - Correct Answers ✅IFRS AC
1. Transactions occur
2. Effects are recorded in ledger accounts and are balanced
off
3. Trial balance
4. Year-end adjustments and ledgers closed off
Grade Assured) 2026 Update
Owned and operated by one owner who is liable for the
business - Correct Answers ✅Sole Trader
Two or more owners who share the liability of the business -
Correct Answers ✅Partnership
Separate legal entities - Correct Answers ✅Limited Liability
Company
Presents the main ideas, concepts and principles upon which
all IFRS Standards, and therefore financial statements, are
based. - Correct Answers ✅The framework
Income
Expenses - Correct Answers ✅SPL elements
Assets
Liabilities
Capital - Correct Answers ✅SFP elements
Asset expenditure (SOFP)
Expenses (SOPL) - Correct Answers ✅Classification of
expenditure
,ACCA FA Questions and Answers (Top
Grade Assured) 2026 Update
A present economic resource controlled by the entity as a
result of past events - Correct Answers ✅Asset
Expenditure likely to increase the future earning capability of
the entity - Correct Answers ✅Asset expenditure
A present obligation of the entity to transfer an economic
resource as a result of past events - Correct Answers
✅Liability
The residual interest in the assets of the entity after
deducting all its liabilities - Correct Answers
✅Capital/Equity
Increases in assets, or decreases in liabilities, that result in
increases in equity, other than those relating to contributions
from holders of equity claims - Correct Answers ✅Income
Decreases in assets, or increases in liabilities, that result in a
decrease in equity, other than those relating to distributions
to holders of equity claims - Correct Answers ✅Expense
1. Relevance
2. Faithful Representation - Correct Answers
✅Fundamental Qualitative Characteristics
,ACCA FA Questions and Answers (Top
Grade Assured) 2026 Update
1. Comparability
2. Verifiability
3. Timeliness
4. Understandability - Correct Answers ✅Enhancing
Qualitative Characteristics
If an item's omission or misstatement is likely to change the
perception or understanding of the user of that information. -
Correct Answers ✅Materiality
The economic substance of transactions must be accounted
for, and not just their strict legal form. - Correct Answers
✅Substance over form
Financial statements are presented on the basis that the
entity will continue to trade for the foreseeable future. -
Correct Answers ✅Going Concern
Financial information is recorded and reported separately
from the owner's personal financial information - Correct
Answers ✅The business entity
Transactions are recorded when revenues are earned and
when expenses are incurred. This pays no regard to timing of
cash receipts and payments. - Correct Answers ✅The
accruals basis of accounting
, ACCA FA Questions and Answers (Top
Grade Assured) 2026 Update
The exercise of caution when making judgements under
conditions of uncertainty. - Correct Answers ✅Prudence
Use of the same accounting principles and methods from
year to year. - Correct Answers ✅Consistency
Body with overall responsibility for development, publication
and promotion of IFRS Standards - Correct Answers ✅IFRS
Foundation
Develops and publishes IFRS Standards. - Correct Answers
✅IASB
Assists on queries relating to IFRS Standards. - Correct
Answers ✅IFRS IC
Advises the IASB. - Correct Answers ✅IFRS AC
1. Transactions occur
2. Effects are recorded in ledger accounts and are balanced
off
3. Trial balance
4. Year-end adjustments and ledgers closed off
