Financial accounting exam prep
FA is a two-hour computer-based exam in two sections, worth 100 marks in total. ACCA's study guide sets out the structure and the nine syllabus areas.
| Length | 2 hours, computer based |
|---|---|
| Section A | 35 objective test questions, 2 marks each |
| Section B | 2 multi-task questions, 15 marks each |
| Pass mark | 50% |
35 objective test questions of 2 marks each. They assess all parts of the syllabus and test knowledge and some comprehension or application of it.
Two multi-task questions of 15 marks each. One tests consolidations and could include a small amount of interpretation. The other tests accounts preparation and could be set in the context of a sole trader or a limited company.
FA is an on-demand computer-based exam, booked directly with an ACCA exam centre. ACCA says results show at the end of the exam and reach your account within 72 hours.
Cash generated from operations
Extracts from Orwell Co's financial statements for the year:
| Item | $ |
|---|---|
| Profit before income taxes | 128,000 |
| Depreciation | 10,000 |
| Finance costs | 5,000 |
| Gain on disposal of equipment | 2,000 |
| Increase in inventories | 10,000 |
| Decrease in trade receivables | 16,000 |
| Increase in trade payables | 9,000 |
Using the indirect method, what is cash generated from operations (before interest and income taxes paid)? (2 marks)
Bonus and rights issues
At the start of the year Wexford Co had 406,000 equity shares of $1 each in issue and a share premium account of $228,000.
During the year it made, in this order, a 1 for 4 bonus issue, using the share premium account, then a 1 for 5 rights issue at $1.50 a share, fully taken up.
What are the balances on the share capital and share premium accounts at the end of the year? (2 marks)
| Account | $ |
|---|---|
| Share capital | |
| Share premium |
Financial reporting
Which TWO of the following are enhancing qualitative characteristics of useful financial information? (2 marks)
37: 35 two-mark objective test questions in Section A and two 15-mark multi-task questions in Section B.
Two hours. ACCA's study guide says the syllabus is assessed by a two-hour computer-based examination.
Consolidations and accounts preparation: one 15-mark multi-task question on each.
ACCA's examinable documents list includes IAS 2, IAS 7, IAS 10, IAS 16, IAS 27, IAS 28, IAS 37, IAS 38, IFRS 3, IFRS 10, IFRS 15, IFRS 18 and the Conceptual Framework.