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ACCA Financial Accounting (FA) 2026 past questions and answers

This 2026 ACCA Financial Accounting (FA) set has 19 practice questions. Try these 5 free sample questions, tap a question to reveal the answer and explanation. Then practise the whole 2026 set with instant marking.

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Sample ACCA Financial Accounting (FA) 2026 questions

1. A lender is deciding whether to renew a loan to a small business. The financial statements include current and prior-year cash-flow information that helps the lender forecast the business's ability to repay. Which qualitative characteristic is most directly demonstrated?
  1. Relevance
  2. Comparability
  3. Verifiability
  4. Timeliness

Answer: A. Relevance

Information with predictive value can influence a user's decisions, so it is relevant. Comparability, verifiability and timeliness are enhancing characteristics, not the principal characteristic described.

2. A business bought office equipment on credit for 6,400. The bookkeeper incorrectly debited purchases and credited payables. Which journal entry correctly reclassifies the debit while leaving the valid payable entry unchanged?
  1. Dr Purchases 6,400; Cr Equipment 6,400
  2. Dr Payables 6,400; Cr Equipment 6,400
  3. Dr Equipment 6,400; Cr Purchases 6,400
  4. Dr Equipment 6,400; Cr Payables 6,400

Answer: C. Dr Equipment 6,400; Cr Purchases 6,400

The original credit to payables is correct, but the debit must be transferred from purchases to equipment. The correcting entry is Dr Equipment and Cr Purchases; option D would duplicate the payable.

3. A delivery van cost 42,000, has an estimated residual value of 2,000 and a useful life of five years. It is depreciated on a straight-line basis, with a full year's depreciation in each year of use. What is its carrying amount after three years?
  1. 18,000
  2. 24,000
  3. 28,000
  4. 30,000

Answer: A. 18,000

Annual depreciation is (42,000 − 2,000) ÷ 5 = 8,000. After three years, carrying amount is 42,000 − (3 × 8,000) = 18,000; option B deducts depreciation for only two years.

4. At the year end, a retailer has a batch of goods with cost of 8,600. The goods can be sold for 8,500, and costs required to complete and sell them are 350. At what amount should this batch be included in inventory under the lower of cost and net realisable value rule?
  1. 8,600
  2. 8,500
  3. 8,150
  4. 350

Answer: C. 8,150

Net realisable value is selling price less completion and selling costs: 8,500 − 350 = 8,150. This is lower than cost of 8,600, so inventory is measured at 8,150.

5. A sole trader has trade receivables of 64,000 before year-end adjustments. A debt of 2,000 is confirmed irrecoverable and is written off. The business then maintains an allowance of 5% of the remaining receivables. What closing allowance is required?
  1. 3,200
  2. 3,100
  3. 3,000
  4. 3,300

Answer: B. 3,100

After writing off the irrecoverable debt, receivables are 64,000 − 2,000 = 62,000. The closing allowance is 5% × 62,000 = 3,100; applying 5% before the write-off gives the wrong base.

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