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ACCA F3 financial Accounting question papers

ACCA F3 financial Accounting question papers

ACCA F3 financial Accounting question papers: Here is the demo of question paper for ACCA F3:

ACCA F3 financial Accounting question papers: Section A – ALL 35 questions are compulsory and MUST be attempted

ACCA F3 financial Accounting question papers: Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each  multiple  choice question.

Each question is worth 2 marks.

  • Which of the following calculates a sole trader’s net profit for a period?

A     Closing net assets + drawings – capital introduced – opening net assets B     Closing net assets – drawings + capital introduced – opening net assets C           Closing net assets – drawings – capital introduced – opening net assets D    Closing net assets + drawings + capital introduced – opening net assets

ACCA F3 financial Accounting question papers

  • Which of the following explains the imprest system of operating petty cash? A Weekly expenditure cannot exceed a set amount

    • The exact amount of expenditure is reimbursed at intervals to maintain a fixed float
    • All expenditure out of the petty cash must be properly authorised
    • Regular equal amounts of cash are transferred into petty cash at intervals

3 Which of the following statements are TRUE of limited liability companies?

  • The company’s exposure to debts and liability is limited
  • Financial statements must be produced
  • A company continues to exist regardless of the identity of its owners
  • 1 and 2 only
  • 1 and 3 only
  • 2 and 3 only
  • 1, 2 and 3
  • Annie is a sole trader who does not keep full accounting The following details relate to her transactions with credit customers and suppliers for the year ended 30 June 20X6
Trade receivables, 1 July 20X5130,000
Trade payables, 1 July 20X560,000
Cash received from customers686,400
Cash paid to suppliers302,800
Discounts allowed1,400
Discounts received2,960
Contra between payables and receivables ledgers2,000
Trade receivables, 30 June 20X6181,000
Trade payables, 30 June 20X684,000

What figure should appear for purchases in Annie’s statement of profit or loss for the year ended 30 June 20X6?



  • Which TWO of the following errors would cause the total of the debit column and the total of the credit column of a trial balance not to   agree?
  • A transposition error was made when entering a sales invoice into the sales day book
  • A cheque received from a customer was credited to cash and correctly recognised in receivables
  • A purchase of non-current assets was omitted from the accounting records
  • Rent received was included in the trial balance as a debit balance
  • 1 and 2
  • 1 and 3
  • 2 and 3
  • 2 and 4
  • At 31 December 20X5 the following require inclusion in a company’s financial statements:
  • On 1 January 20X5 the company made a loan of $12,000 to an employee, repayable on 1 January 20X6, charging interest at 2% per On the due date she repaid the loan and paid the whole of the interest due on the loan to that date.
  • The company paid an annual insurance premium of $9,000 in 20X5, covering the year ending 31 August
  • In January 20X6 the company received rent from a tenant of $4,000 covering the six months to 31 December 20X5.

For these items, what total figures should be included in the company’s statement of financial position as at    31  December 20X5?

ACurrent assets $10,000Current liabilities $12,240
BCurrent assets $22,240Current liabilities $nil
CCurrent assets $10,240Current liabilities $nil
DCurrent assets $16,240Current liabilities $6,000
  • A company’s statement of profit or loss for the year ended 31 December 20X5 showed a net profit of $83,600. It was later found that $18,000 paid for the purchase of a motor van had been debited to the motor expenses It is the company’s policy to depreciate motor vans at 25% per year on the straight line basis, with a full year’s charge in the year of acquisition.

What would the net profit be after adjusting for this error?

  • Xena has the following working capital ratios:
Current ratio1·2:11·5:1
Receivables days75 days50 days
Payables days30 days45 days
Inventory turnover42 days35 days

Which of the following statements is    correct?

  • Xena’s liquidity and working capital has improved in 20X9
  • Xena is receiving cash from customers more quickly in 20X9 than in 20X8
  • Xena is suffering from a worsening liquidity position in 20X9
  • Xena is taking longer to pay suppliers in 20X9 than in 20X8

Which of the following statements is/are correct?

  • A statement of cash flows prepared using the direct method produces a different figure to net cash from operating activities from that produced if the indirect method is used
  • Rights issues of shares do not feature in a statement of cash flows
  • A surplus on revaluation of a non-current asset will not appear as an item in a statement of cash flows
  • A profit on the sale of a non-current asset will appear as an item under cash flows from investing activities in the statement of cash flows
  • 1 and 3 only
  • 3 and 4 only
  • 2 and 4 only
  • 3 only
  • A company receives rent from a large number of The total received in the year ended 30 April 20X6 was


The following were the amounts of rent in advance and in arrears at 30 April 20X5 and 20X6:

  30 April 20X5


30 April 20X6


Rent received in advance28,70031,200
Rent in arrears (all subsequently received)21,20018,400

What amount of rental income should appear in the company’s statement of profit or loss for the year ended 30 April 20X6?


ACCA F3 financial Accounting question papers

Which of the following are differences between sole traders and limited liability companies?

  • A sole trader’s financial statements are private and never made available to third parties; a company’s financial statements are sent to shareholders and may be publicly filed
  • Only companies have share capital
  • A sole trader is fully and personally liable for any losses that the business might make
  • Drawings would only appear in the financial statements of a sole trader
  • 1 and 4 only
  • 2, 3 and 4
  • 2 and 3 only
  • 1, 3 and 4

12 Which of the following statements is true?

  • The interpretation of an entity’s financial statements using ratios is only useful for potential investors
  • Ratios based on historical data can predict the future performance of an entity
  • The analysis of financial statements using ratios provides useful information when compared with previous performance or industry averages
  • An entity’s management will not assess an entity’s performance using financial ratios
  • A company’s motor vehicles cost account at 30 June 20X6 is as follows:

Motor vehicles –  cost

 $ $
Balance b/f35,800Disposal12,000
Additions12,950Balance c/f36,750
 ––––––– –––––––
 48,750 48,750
 ––––––– –––––––


What  opening  balance  should  be  included  in  the  following  period’s  trial  balance  for  Motor  vehicles  –  cost  at 1   July  20X6?

A   $36,750 Dr B   $48,750 Dr C    $36,750 Cr D     $48,750 Cr

14 Which TWO of the following items must be disclosed in the note to the financial statements for intangible assets?

  • The useful lives of intangible assets capitalised in the financial statements
  • A description of the development projects that have been undertaken during the period
  • A list of all intangible assets purchased or developed in the period
  • Impairment losses written off intangible assets during the period
  • 1 and 4
  • 2 and 3
  • 3 and 4
  • 1 and 2


15 Which of the following statements are   correct?

  • Capitalised development expenditure must be amortised over a period not exceeding five
  • Capitalised development costs are shown in the statement of financial position under the heading of non-current assets
  • If certain criteria are met, research expenditure must be recognised as an intangible
  • 2 only
  • 2 and 3
  • 1 only
  • 1 and 3
  • The following transactions relate to Rashid’s electricity expense ledger account for the year ended 30 June 20X9:
Prepayment brought forward550
Cash paid5,400
Accrual carried forward650

What amount should be charged to the statement of profit or loss in the year ended 30 June 20X9 for electricity?

  • At 30 June 20X5 a company’s allowance for receivables was $39,000. At 30 June 20X6 trade receivables totalled

$517,000. It was decided to write off debts totalling $37,000 and to adjust the allowance for receivables to the equivalent of 5% of the trade receivables based on past events.

ACCA F3 financial Accounting question papers

What figure should appear in the statement of profit or loss for the year ended 30 June 20X6 for receivables expense?



  • The total of the list of balances in Valley’s payables ledger was $438,900 at 30 June This balance did not agree with Valley’s payables ledger control account balance. The following errors were discovered:
  • A contra entry of $980 was recorded in the payables ledger control account, but not in the payables
  • The total of the purchase returns daybook was undercast by $1,000.
  • An invoice for $4,344 was posted to the supplier’s account as $4,434.

What amount should Valley report in its statement of financial position for accounts payable at 30 June  20X6?


  • According to IAS 2 Inventories, which TWO of the following costs should be included in valuing the inventories of  a  manufacturing company?
  • Carriage inwards
  • Carriage outwards
  • Depreciation of factory plant
  • General administrative overheads
  • 1 and 4
  • 1 and 3
  • 3 and 4
  • 2 and 3
  • Prisha has not kept accurate accounting records during the financial She had opening inventory of $6,700 and purchased goods costing $84,000 during the year. At the year end she had $5,400 left in inventory. All sales are made at a mark up on cost of 20%.

What is Prisha’s gross profit for the year?


ACCA F3 financial Accounting question papers

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