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ACCA Financial Accounting (FA) 2022 past questions and answers

This 2022 ACCA Financial Accounting (FA) set has 20 practice questions. Try these 5 free sample questions, tap a question to reveal the answer and explanation. Then practise the whole 2022 set with instant marking.

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Sample ACCA Financial Accounting (FA) 2022 questions

1. At its year end, Vale Ltd knows that a material supplier liability has been incurred, but omits it because the supplier's invoice has not yet arrived. Which aspect of financial information is most directly undermined?
  1. Relevance
  2. Comparability
  3. Faithful representation
  4. Understandability

Answer: C. Faithful representation

Omitting a material liability makes the financial statements incomplete, so they do not faithfully represent the entity's position. The invoice's late arrival does not remove the obligation incurred by the reporting date.

2. Mira starts a business by contributing a computer system valued at $3,200 from her personal assets. Which journal entry records the contribution in the business's books?
  1. Dr Computer equipment $3,200; Cr Capital $3,200
  2. Dr Capital $3,200; Cr Computer equipment $3,200
  3. Dr Purchases $3,200; Cr Capital $3,200
  4. Dr Computer equipment $3,200; Cr Sales $3,200

Answer: A. Dr Computer equipment $3,200; Cr Capital $3,200

The business receives a non-current asset, so equipment is debited. The owner's contribution increases capital, which is credited; it is neither a purchase expense nor sales income.

3. A machine cost $48,000, has an estimated residual value of $3,000 and a useful life of five years. It is depreciated using the straight-line method for a full year. What is the annual depreciation charge?
  1. $8,400
  2. $9,600
  3. $10,200
  4. $9,000

Answer: D. $9,000

Depreciable amount is $48,000 less $3,000, or $45,000. Dividing by five years gives annual depreciation of $9,000; using cost without deducting residual value would overstate the charge.

4. A retailer has 100 identical items at the reporting date. Each item cost $72, can be sold for $80, and requires $6 of completion costs and $4 of selling costs. At what amount should the 100 items be included in inventory?
  1. $7,200
  2. $7,000
  3. $8,000
  4. $6,600

Answer: B. $7,000

Net realisable value per item is $80 less $6 completion costs and $4 selling costs, or $70. Inventory is measured at the lower of cost and NRV, so 100 items are valued at $7,000.

5. A business has trade receivables of $90,000 and an existing credit allowance for receivables of $2,500. The required closing allowance is 4% of trade receivables. What expense should be charged for the year to adjust the allowance?
  1. $2,500
  2. $3,600
  3. $1,100
  4. $6,100

Answer: C. $1,100

The required closing allowance is 4% of $90,000, or $3,600. The existing credit balance is $2,500, so the increase charged as an expense is $1,100, not the full closing allowance.

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