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ACCA Financial Accounting (FA) 2023 past questions and answers

This 2023 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 2023 set with instant marking.

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Sample ACCA Financial Accounting (FA) 2023 questions

1. Aster Ltd and Birch Ltd prepare financial statements for similar businesses. Both consistently apply the same accounting policy to comparable transactions and explain that policy in their statements. Which qualitative characteristic is most directly supported by this consistency?
  1. Faithful representation
  2. Verifiability
  3. Comparability
  4. Timeliness

Answer: C. Comparability

Consistent policies for similar transactions help users compare the two entities. Consistency does not by itself guarantee faithful representation or timeliness.

2. A bookkeeper records a credit purchase invoice for 1,250 by debiting purchases 1,250 and crediting payables 1,520. All other entries are correct. What is the effect on the trial balance totals?
  1. Debit totals exceed credit totals by 270
  2. Credit totals exceed debit totals by 270
  3. Debit totals exceed credit totals by 1,250
  4. The trial balance still agrees

Answer: B. Credit totals exceed debit totals by 270

The credit entry is 270 greater than the debit entry, so credit totals exceed debit totals by 270. A one-sided difference of this size means the trial balance will not agree.

3. A company buys equipment for 48,000. It estimates a residual value of 3,000 and a useful life of five years, and depreciates it on a straight-line basis. What is the annual depreciation charge?
  1. 9,600
  2. 9,000
  3. 6,000
  4. 10,200

Answer: B. 9,000

Depreciable amount is 48,000 minus 3,000, or 45,000. Dividing by five years gives annual depreciation of 9,000; option A incorrectly ignores residual value.

4. At the reporting date, a retailer has an item of inventory that cost 720. It can be sold for 780, but completion costs will be 85 and selling costs will be 30. At what amount should the item be included in closing inventory?
  1. 720
  2. 780
  3. 665
  4. 695

Answer: C. 665

Net realisable value is 780 minus 85 minus 30, which is 665. Inventory is measured at the lower of cost and net realisable value, so it is reported at 665.

5. A bank statement shows a positive balance of 10,800. At the same date, unpresented cheques are 1,650 and a deposit not yet credited by the bank is 2,100. Assuming there are no other differences, what is the balance in the cash book?
  1. 11,250
  2. 10,350
  3. 14,550
  4. 9,150

Answer: A. 11,250

The cash book balance is 10,800 plus the deposit not yet credited, less unpresented cheques: 10,800 + 2,100 - 1,650 = 11,250. The reconciling items are not both added to the statement balance.

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