FA 4th Mock Test

Jul 17, 2026

Uploaded by Asher

Financial Accounting (FA) mock exam covering core IFRS/IAS concepts and accounting treatments across multiple scenario-based questions. Topics include handling under- and over-provisions in income tax expense, measuring warranty provision movements and charging warranty expense, classifying adjusting versus non-adjusting events after the reporting period under IAS 10, determining required disclosures and disclosure-note reasons, equity and reserves balancing from trial balance extracts, capitalization criteria for intangible assets under IAS 38, IFRS 15 revenue recognition for subscription contracts, and trial balance preparation timing in the financial statement process.

LanguageEnglish

CategoryExam

FormatPDF

Pages10

Reading Time25 min

AccessFree to download

Certified College of Accountancy’s Mock Exam PAPER: Financial Accounting (FA) | Full Marks | 25×2=50 | | --- | --- | | Pass Marks | 26 | Time allowed: 1 Hour STUDENTS NAME: …………………………….. DATE: ………………………………………………… Marks obtained: ……………………………………………… Teachers Remarks: :………………………………………………………………………………………………… ………………………………………………………………………………………………… 1.The current tax liability is an estimate of the income tax due at the year end which means that under and over provisions can arise in subsequent accounting periods. How are under and over provisions dealt with in the income tax expense? | | Deduct from current tax charge | Add to current tax charge | | --- | --- | --- | | Over provision from a previous year | | | | Under provision from a previous year | | | 2. . Based on the past experience, Kiran has always provided 5% revenue each year as a provision to meet expected claims under warranty. The balance on the warranty provision at 1st January 20x6 was $20,500 . During the year $11,600 was spent settling claims and the remaining opening provision was released as unused. Kiran’s revenue for the year ended 31 December 20x6 was $268,000 . What should be the warranty expense charge in kiran’s statement of profit or loss for year ended 31 December 20x6? 1. $25,000 2. $13,400 3. $11,600 4. $4,500 Answer : 3. The financial statements of Jurong were prepared for the financial year ended 31 December 20x6. The following events occurred after the end of the reporting period but before the financial statements were authorized for issue: 1. Inventory, which was shown at its estimated net realisable value (NRV) on the statement of financial position, was sold during January 20x7 at a figure significantly lower than the NRV estimate. 2. A dispute arising from a contract entered into with another company in January 20x7has led to a litigation claim against Jurong. Which of the above events should be treated as an adjusting event for the year ended 31 December 20x6 in accordance with IAS 10 Events After the Reporting Period? 1. Both 2. 1 only 3. 2 only 4. Neither Answer : 4. . How should each of the following items be treated in the financial statements of Jacob [co. at 31 December 20x9?](co. at 31 December 20x9?) | | Provision | Contingent liability | | --- | --- | --- | | Jacob Co guarantees the borrowings of ladder Co. on 1st September 20x9 . At the year end of 31 December 20x9 . [Ladder Co. is](Ladder Co. is) in a strong financial position. | | | | [Jacob Co. is](Jacob Co. is) in a legal dispute with a customer. The customer has claimed $500,000 and Jacob Co. has offered $200,000 to avoid the case being taken to court. Jacob Co’s lawyer has advised that it is likely Jacob Co. will lose the case if it goes to court. | | | 5. . Which TWO of the following are reasons why companies must prepare disclosure notes? 1. To comply with finance providers requirements 2. To explain items presented in the annual f

Jul 17, 2026

Uploaded by Asher