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ACCA Financial Accounting (FA) 2025 past questions and answers

This 2025 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 2025 set with instant marking.

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Sample ACCA Financial Accounting (FA) 2025 questions

1. At the year end, Arlo Ltd reports a warranty obligation using the best estimate based on current repair data. The estimate is prepared without bias and includes the information needed to understand the obligation. Which qualitative characteristic is most directly demonstrated?
  1. Faithful representation
  2. Comparability
  3. Timeliness
  4. Understandability

Answer: A. Faithful representation

A complete, neutral depiction of the obligation based on the best available estimate supports faithful representation. Comparability concerns comparing information across entities or periods, not the unbiased depiction itself.

2. A small design business pays 720 in cash for office stationery used immediately. Which double entry records the transaction?
  1. Debit cash 720; credit stationery expense 720
  2. Debit stationery expense 720; credit cash 720
  3. Debit inventory 720; credit trade payables 720
  4. Debit trade payables 720; credit cash 720

Answer: B. Debit stationery expense 720; credit cash 720

The stationery is consumed, so the expense is debited; the cash asset decreases, so cash is credited. Debiting inventory would be inappropriate because these supplies are used immediately rather than held for resale.

3. On 1 January, a retailer buys equipment for 96,000. Its estimated residual value is 6,000 and its useful life is five years. It uses straight-line depreciation and charges a full year in the year of purchase. What is the annual depreciation charge?
  1. 19,200
  2. 18,000
  3. 20,400
  4. 21,000

Answer: B. 18,000

Depreciable amount is 96,000 − 6,000 = 90,000; annual depreciation is 90,000 ÷ 5 = 18,000. Option A incorrectly depreciates the residual value as well.

4. At its reporting date, a wholesaler holds 240 identical units costing 18 each. They can be sold for 20 each, but selling costs are 3 per unit. At what amount should this inventory be measured in total?
  1. 4,080
  2. 4,320
  3. 4,800
  4. 5,040

Answer: A. 4,080

Inventory is measured at the lower of cost and net realisable value. NRV per unit is 20 − 3 = 17, below cost of 18, so 240 × 17 = 4,080; using cost would overstate inventory.

5. A company has trade receivables of 60,000. A balance of 2,000 is confirmed irrecoverable and is to be written off. The company then requires an allowance of 5% of the remaining receivables. What is the closing allowance?
  1. 2,900
  2. 3,000
  3. 4,900
  4. 5,000

Answer: A. 2,900

After writing off 2,000, the remaining receivables are 58,000; 5% is 2,900. Option C adds the irrecoverable debt to the allowance even though it has already been written off.

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