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PR A C T I C E
&
R E V I S I O N
K I T
BPP Learning Media is the sole ACCA Platinum Approved Learning Partner content for the FIA suite of qualifications. In this, the only FFA/F3 Practice and Revision Kit to be reviewed by the examiner:
We include Do you know? Checklists to test your knowledge and understanding of topics
We provide you with two mock exams including the Pilot paper
We provide the ACCA examiners answers as well as our own to the Pilot paper as an additional revision aid
BPP's i-Pass product also supports this paper and is a vital tool if you are taking the computer based exam.
FOR EXAMS FROM FEBRUARY 2013 TO JANUARY 2014
FFA
PAPER F3
FINANCIAL ACCOUNTING
Note FIA FFA and ACCA Paper F3 are examined under the same syllabus and study guide.
FFA/F3 FINANCIAL ACCOUNTING
ii
First edition May 2011 Second edition November 2012
ISBN 9781 4453 9977 5 Previous ISBN 9781 4453 7312 6 e-ISBN 9781 4453 9253 0
British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library
Published by
BPP Learning Media Ltd BPP House, Aldine Place London W12 8AA
www.bpp.com/learningmedia
Your learning materials, published by BPP Learning Media Ltd, are printed on paper sourced from sustainable, managed forests.
All our rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of BPP Learning Media Ltd.
We are grateful to the Association of Chartered Certified Accountants for permission to reproduce past examination questions. The suggested solutions in the exam answer bank have been prepared by BPP Learning Media Ltd, except where otherwise stated.
BPP Learning Media Ltd 2012
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CONTENTS
iii
Contents Page
Finding questions Question index ..............................................................................................................................v
Helping you with your revision the ONLY FFA/F3 Practice and Revision Kit to be reviewed by the examiner ............................................................................................. viii
Using your BPP Practice and Revision Kit........................................................................................ ix Passing the FFA/F3 exam ............................................................................................................... x Approach to examining the syllabus ................................................................................................. x The Computer Based Examination .................................................................................................. xi Tackling Multiple Choice Questions................................................................................................ xii Using your BPP products............................................................................................................. xiii
Questions and answers Questions .................................................................................................................................... 3 Answers .................................................................................................................................. 175
Exam practice Mock exam 1 (Pilot Paper) Questions......................................................................................................................... 245 Answers........................................................................................................................... 261 ACCA examiners answers.................................................................................................. 269
Mock exam 2 Questions......................................................................................................................... 277 Answers........................................................................................................................... 291
Review form
FFA/F3 FINANCIAL ACCOUNTING
iv
QUESTION INDEX
v
Question index
Time allocation
Page
Marks Mins Questions Answers
Part A: The context and purpose of financial reporting
The context and purpose of financial reporting
Questions 1.1 to 1.14 28 34 5 175
Part B: The qualitative characteristics of financial information
The qualitative characteristics of financial information
Questions 2.1 to 2.12 24 29 11 175
Part C: Financial statements
Double entry bookkeeping
Questions 3.1 to 3.17 34 41 17 176
Questions 4.1 to 4.16 32 38 20 177
Part D: Recording transactions and events
Sales tax
Questions 5.1 to 5.8 16 19 27 179
Inventories
Questions 6.1 to 6.18 36 43 28 180
Tangible non-current assets
Questions 7.1 to 7.17 34 41 33 181
Questions 8.1 to 8.20 40 48 38 183
Intangible non-current assets
Questions 9.1 to 9.12 24 29 43 185
Accruals and prepayments
Questions 10.1 to 10.15 30 36 46 186
Receivables and payables
Questions 11.1 to 11.19 38 46 50 188
Provisions and contingencies
Questions 12.1 to 12.10 20 24 54 189
FFA/F3 FINANCIAL ACCOUNTING
vi
Time allocation
Page
Marks Mins Questions Answers
Part E: Preparing a trial balance
Control accounts
Questions 13.1 to 13.20 40 48 61 190
Bank reconciliations
Questions 14.1 to 14.15 30 36 66 192
Correction of errors
Questions 15.1 to 15.15 30 36 70 193
Suspense accounts
Questions 16.1 to 16.10 20 24 74 195
Part F: Preparing financial statements
Preparation questions
Questions 17.1 to 17.10 N/A N/A 81 196
Company financial statements
Questions 18.1 to 18.22 44 53 92 209
Disclosure notes
Questions 19.1 to 19.10 20 24 98 211
Events after the reporting period
Questions 20.1 to 20.8 16 19 101 211
Statements of cash flows
Questions 21.1 to 21.16 32 38 103 212
Incomplete records
Questions 22.1 to 22.16 32 38 108 213
Part G: Preparing simple consolidated financial statements
Preparation questions
Questions 23.1 to 23.5 N/A N/A 115 215
Consolidated financial statements
Questions 24.1 to 24.24 48 58 119 222
Part H: Interpretation of financial statements
Preparation question
Question 25.1 N/A N/A 129 225
Interpretation of financial statements
Questions 26.1 to 26.13 26 31 130 226
QUESTION INDEX
vii
Time allocation
Page
Marks Mins Questions Answers
Mixed banks
Mixed bank 1: Questions 27.1 to 27.20 40 48 133 227
Mixed bank 2: Questions 28.1 to 28.20 40 48 139 229
Mixed bank 3: Questions 29.1 to 29.20 40 48 145 231
Mixed bank 4: Questions 30.1 to 30.20 40 48 150 233
Mixed bank 5: Questions 31.1 to 31.20 40 48 156 235
Mixed bank 6: Questions 32.1 to 32.20 40 48 161 237
Mixed bank 7: Questions 33.1 to 33.20 40 48 167 239
Mock exams
Mock exam 1 (Pilot Paper) 100 120 245 261
Mock exam 2 100 120 277 291
FFA/F3 FINANCIAL ACCOUNTING
viii
Helping you with your revision the ONLY FFA/F3 Practice and Revision Kit to be reviewed by the examiner!
BPP Learning Media the sole Platinum Approved Learning Partner - content As ACCAs sole Platinum Approved Learning Partner content, BPP