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ACCA Financial Accounting (FA) 2024 past questions and answers

This 2024 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 2024 set with instant marking.

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Sample ACCA Financial Accounting (FA) 2024 questions

1. Aster Ltd has reported its current-year and prior-year results side by side and applied the same accounting policies in both years. Which enhancing qualitative characteristic is most directly supported by this consistent presentation?
  1. Relevance
  2. Timeliness
  3. Comparability
  4. Verifiability

Answer: C. Comparability

Applying consistent policies and presenting comparable prior-period figures helps users identify similarities and differences between periods. Relevance concerns influencing decisions, while timeliness concerns providing information promptly.

2. On 12 June, a retailer received goods for resale costing $2,400 on credit from a supplier. Which entry records the transaction in the retailer's ledger?
  1. Debit purchases $2,400; credit trade payables $2,400
  2. Debit trade payables $2,400; credit purchases $2,400
  3. Debit cash $2,400; credit sales $2,400
  4. Debit inventory $2,400; credit cash $2,400

Answer: A. Debit purchases $2,400; credit trade payables $2,400

The credit purchase increases purchases (debit) and the amount owed to the supplier (credit). Cash has not been paid, so a cash entry is not appropriate.

3. A workshop bought equipment for $5,000 in cash but recorded the debit in repairs expense and correctly credited cash. What is the effect before correction?
  1. Profit and non-current assets are both overstated by $5,000
  2. Profit and non-current assets are both understated by $5,000
  3. The trial balance will not balance by $5,000
  4. Profit is understated and non-current assets are overstated by $5,000

Answer: B. Profit and non-current assets are both understated by $5,000

The balanced entry was posted to the wrong debit account, so the trial balance still balances. Repairs expense is overstated and equipment is omitted, understating both profit and non-current assets by $5,000.

4. A delivery van originally cost $30,000 and had accumulated depreciation of $18,000 when it was sold for $9,000. What is the result on disposal?
  1. A gain of $3,000
  2. A loss of $9,000
  3. A gain of $9,000
  4. A loss of $3,000

Answer: D. A loss of $3,000

The carrying amount is $30,000 minus $18,000 = $12,000. Sale proceeds of $9,000 are $3,000 below carrying amount, so the disposal results in a $3,000 loss.

5. A food distributor has 240 units of an item at year end. Each unit cost $32; its expected selling price is $35, with completion costs of $2 and selling costs of $2 per unit. At what amount should the units be included in closing inventory?
  1. $7,680
  2. $7,440
  3. $8,400
  4. $7,200

Answer: B. $7,440

Net realisable value per unit is $35 minus $2 completion costs minus $2 selling costs = $31. Inventory is measured at the lower of cost ($32) and NRV ($31), so 240 units are carried at $7,440.

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