Financial accounting exam prep
Sit an original two-hour paper laid out as ACCA's study guide describes the exam: 35 two-mark objective test questions and two 15-mark multi-task questions. Every answer is marked when you hand in, with the working for each question.
| Our free paper | 37 questions, 100 marks, 2 hours |
|---|---|
| Our Section A | 35 two-mark questions: multiple choice, multiple response and number entry |
| Our Section B | A consolidation question and an accounts preparation question |
| Pass mark | 50%, as in the real exam |
Each Section A question earns its 2 marks only when every part of the answer is right, so a multiple-response question needs every right option ticked. Each Section B box earns the marks written beside it.
If you are not ready for two hours, start with the free 15-question diagnostic. It shows the topic to fix first.
Statement of profit or loss
Ulverston Co has these figures for the year:
| Item | $ |
|---|---|
| Revenue | 586,000 |
| Cost of sales | 281,000 |
| Distribution costs | 35,000 |
| Administrative expenses | 77,000 |
| Finance costs (interest on borrowings) | 10,000 |
| Income tax expense | 18,000 |
What is the operating profit? (2 marks)
Correcting the cash book
Garston Co's cash book shows a credit (overdrawn) balance of $6,700 at the year end. Comparing it with the bank statement found:
| Item | $ |
|---|---|
| Bank charges not recorded in the cash book | 110 |
| A direct debit for insurance not recorded in the cash book | 210 |
| A credit transfer from a customer not recorded in the cash book | 970 |
| A customer's cheque returned unpaid by the bank, not yet recorded | 400 |
| Cheques sent to suppliers not yet presented | 730 |
| Takings paid in on the last day, not yet on the statement | 1,080 |
What is the corrected cash book balance to be reported in the statement of financial position? (2 marks)
Enter the balance as a positive figure and choose whether it is cash at bank or an overdraft.
| Answer | |
|---|---|
| Corrected balance ($) | |
| Reported as |
Unrealised profit
During the year Thorne Co sold goods to its subsidiary Quarrie Co for $108,000, at a mark-up of 20% on cost. At the year end Quarrie Co still held 1/3 of these goods.
What unrealised profit should be removed on consolidation? (2 marks)
Yes. Practice exam 1 here is free: an original two-hour paper with 37 questions and 100 marks, marked against the 50% pass mark.
ACCA says its Study Hub, with practice and revision questions, is free to students through MyACCA.
50 of the 100 marks.