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Free ACCA Financial Reporting Practice Questions & Answers

400 exam-style Financial Reporting questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.

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Question 151

Entity A has the following capital structure: 1,000,000 ordinary shares, 200,000 share options (exercise price 3.00, market price 4.50), and profit after tax of 400,000. Calculate diluted EPS.

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Question 152

Entity K has 2,000,000 shares in issue on 1 January. On 1 April it made a 1-for-4 bonus issue, and on 1 October it issued 500,000 shares for cash at market price. Calculate the weighted average shares for EPS.

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Question 153

An entity's EBITDA is 900,000. Depreciation is 120,000. Interest is 80,000. Tax rate is 25%. Capital employed is 3,200,000. Calculate ROCE.

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Question 154

What is a financial instrument?

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Question 155

A financial asset is initially measured at:

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Question 156

A debt instrument measured at amortised cost is one that:

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Question 157

Under the five-step revenue recognition model, when is revenue recognised?

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Question 158

Which of the following is the first step in the five-step revenue recognition model?

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Question 159

A performance obligation is satisfied over time if:

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Question 160

What is a contract asset?

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Question 161

A contract liability (deferred revenue) arises when:

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Question 162

Transaction costs on a financial asset classified at FVTPL are:

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Question 163

Which of the following is a financial liability?

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Question 164

Under IFRS 9, how are debt instruments classified?

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Question 165

What does the SPPI test assess?

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Question 166

Which of the following is the correct treatment of dividends received on an equity instrument classified at FVTPL?

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Question 167

Variable consideration in a revenue contract should be estimated and included in the transaction price if:

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Question 168

What is the effective interest method used for?

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Question 169

What is the difference between a trade receivable and a contract asset?

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Question 170

Under IFRS 9, how are equity instruments classified by default if no election is made?

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Question 171

A debt instrument classified at FVTOCI (for a business model of hold-to-collect and sell) — where do fair value changes appear?

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Question 172

For equity instruments classified at FVTOCI (irrevocable election), gains on disposal are:

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Question 173

Under the amortised cost method for a financial liability, interest expense is calculated using:

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Question 174

A company sells goods with a warranty. Under revenue recognition principles, the warranty that provides additional services is:

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Question 175

Entity A sells 3 goods for a bundle price of 90. Stand-alone prices are: Good 1 = 40, Good 2 = 35, Good 3 = 25. How much revenue is allocated to Good 1?

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Question 176

When a customer pays 12 months in advance for a subscription service, revenue is recognised:

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Question 177

Which costs of obtaining a contract are capitalised as an asset?

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Question 178

A company sells products with a right of return within 30 days. At year end, goods worth 80,000 have been sold but 10,000 of returns are expected based on historical data. How is revenue recognised?

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Question 179

An entity has financial assets at FVTPL and FVTOCI. At year end, the FVTPL asset increases in value by 20,000 and the FVTOCI debt instrument increases by 15,000. How are these movements reported?

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Question 180

An entity purchases bonds for 95,000 (below par of 100,000) with a coupon of 4% and effective interest rate of 5%, classified at amortised cost. In year 1, what is the interest income and what is the carrying amount at year end?

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Free ACCA Financial Reporting Practice Questions & Answers

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