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ACA ICAEW- ACCOUNTING EXAM QUESTIONS AND 100% CORRECT ANSWERS
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ACA ICAEW- ACCOUNTING EXAM QUESTIONS AND100% CORRECT 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
Business entity concept- it should be answered that Business transactions need to be
separated from the personal transaction of owner
Qualitative characteristics of financial information- it needs to be answered that Two
underlying concepts
1. Relevance [Helps users to evaluate past and predict future events + Materiality]
2. Faithful Representation [Neutral; Free from Error; Complete]
Four enhancing Characteristics
1. Verifiability [Proven]
2. Timeliness [on time to influence users' decisions]
, 3. Understandability [understood 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 - Solution 1. Integrity
2. Objectivity
3. Professional Competence and Due Care
4. Confidentiality
5. Professional Behavior
Accounting Equation - Solution Assets = Capital + Liabilities
same:
Assets - Liabilities = Capital + Profit - Drawings
ICAEW Code of Ethics - Solution - Demonstrate highest standards of professional
conduct and take public interest into consideration
- Maintain reputation of accounting profession
Payroll cost - Solution Total Payroll cost = Gross Pay + Employer NI + Employer Pension
Net Pay by Employer - Solution Gross Pay
- Employees NI
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