ACA [ICAEW] – ACCOUNTING Exam Questions With Verified Answers
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Course
ACA
Institution
ACA
ACA [ICAEW] – ACCOUNTING Exam
Questions With Verified Answers
Books of Original Entry - answer1. Cash Book
2. Sales Day Book (Credit Sales)
3. Purchases Day Book (Credit Purchases)
4. Petty Cash Book
5. Journal Book
6. The Payroll
Statement of Financial Position - answerSOFP
- Snapshot o...
ACA [ICAEW] – ACCOUNTING Exam
Questions With Verified Answers
Books of Original Entry - answer✔1. Cash Book
2. Sales Day Book (Credit Sales)
3. Purchases Day Book (Credit Purchases)
4. Petty Cash Book
5. Journal Book
6. The Payroll
Statement of Financial Position - answer✔SOFP
- Snapshot of assets controlled, liabilities owned and capital at a point in time
Statement of Profit and Loss - answer✔Income and expenses over a period of time
The Business entity concept - answer✔Business transactions should be kept separate from the
personal transaction of the owner
Qualitative characteristics of financial information - answer✔Two fundamental concepts
1. Relevance [Assists users in evaluating past and predicting future events + Materiality]
2. Faithful Representation [Neutral; Free from Error; Complete]
Four Enhancing Characteristics
1. Verifiability [Can be proven]
2. Timeliness [In time to influence decisions of users]
3. Understandability [Readily understandable by people with reasonable knowledge]
4. Comparability [Consistency]
Accrual basis of accounting - answer✔- Items recognized as assets, liabilities, equity, income
and expenses (elements of FS) when they satisfy definitions and recognition criteria for those
elements in conceptual framework
- Transactions recognized when they occur
!! Income earned must be matched against the expenditure incurred in earning it
Accrual Concept - answer✔Effects of transactions reognized when they occur - not when cash
received/paid
IFAC Code of Ethics - answer✔1. Integrity
2. Objectivity
3. Professional Competence and Due Care
4. Confidentiality
5. Professional Behavior
Accounting Equation - answer✔Assets = Capital + Liabilities
same:
Assets - Liabilities = Capital + Profit - Drawings
ICAEW Code of Ethics - answer✔- Demonstrate highest standards of professional conduct and
take public interest into consideration
- Maintain reputation of accounting profession
Net Pay by Employer - answer✔Gross Pay
- Employees NI
- PAYE
= Net Pay
Trial Balance Definition - answer✔A list of balances from each ledger account split into debits
and credits
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