ICAEW ACA Certificate Level · Accounting Fundamentals

Accounting concepts, ethics and sustainability

12 practice questions, each with the answer and an explanation.

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Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 12 questions

  1. Under the IFRS Conceptual Framework, which pair are the two fundamental qualitative characteristics of useful financial information?
  2. A company's financial statements are prepared on the going concern basis. What does this assume?
  3. A sole trader pays £7,200 on 1 November for insurance covering the 12 months to 31 October the following year. The year end is 31 December. What is the insurance expense under the accruals basis for t…
  4. Which of the following is the Conceptual Framework's definition of an asset?
  5. Goods are sold to a customer who has the right to require the seller to buy them back at the original price plus 10% after one year. Which concept leads the seller to treat the transaction as a secure…
  6. Which statement about the 'true and fair view' override is correct for a company reporting under IFRS?
  7. Which body issues IFRS Accounting Standards?
  8. Which standards did the ISSB issue first in June 2023?
  9. A finance manager is asked by the financial director to delay recording a large invoice received on 30 December until January so that the year-end profit target is met. Which fundamental ethical princ…
  10. Under IFRS, information is material if
  11. IFRS S1 requires an entity to disclose information about sustainability-related risks and opportunities. Which are those that must be disclosed?
  12. Which treatment applies when a financial statement preparer concludes the entity is no longer a going concern and will cease trading?

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