ACCA PAPER F3 FINANCIAL ACCOUNTING PRACTICE & REVISION KIT FOR EXAMS FROM FEBRUARY 2014

313 Pages·2016·3.92 MB·English

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About BPP Learning Media C
FINANCIAL ACCOUNTING
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BPP Learning Media is dedicated to supporting aspiring business professionals with top quality learning material as they study for
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This Practice & Revision Kit has been reviewed by the examiner to ensure that it provides full coverage of the syllabus and T
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study guide for FIA FFA Financial Accounting and ACCA Paper F3 Financial Accounting of the ACCA’s Foundations in Accountancy
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qualifications.
When you have worked through it you will be ready to tackle the mock exams at the end of the Kit and compare your answers
with ours
Targeted at FIA exams from February 2014, it contains:
n DO YOU KNOW? Checklists to test your knowledge of Financial Accounting topics
n A bank of exam-standard MCQs with answers, covering the syllabus
n Two mock exams including the FFA/F3 pilot paper
R PRACTICE & REVISION KIT
At BPP Learning Media, we specialise in helping people pass professional exams. Your exam success is our business. EVPR
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For more details about this or any other BPP Learning Media products, please call our customer services team on IOT
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w08w4w5 .0b7p5p1.c 1o0m0/(lweaitrhnini nthgem UeKd)iaor [phone](from overseas), email [email protected] visit our website KITE & FOR EXAMS FROM FEBRUARY 2014
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NOVEMBER 2013 2014 MS
UK £15.00
BPP House,Aldine Place, LondonW12 8AA
Tel: [phone] (for orders within the UK)
Tel: [phone]
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PAPER F3
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Welcome to BPP Learning Media's Practice and Revision Kit for FFA. In this, the
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only FFA/F3 Practice and Revision Kit to be reviewed by the examiner:
 We include Do you know? Checklists to test your knowledge and S
understanding of topics
 We provide you with two mock exams including the Specimen exam I
 We provide the ACCA examiner’s answers as well as our own to the
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Specimen exam as an additional revision aid
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BPP's i-Pass product also supports this paper and is a vital tool if you are taking the
computer based exam.

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Note
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FIA FFA and ACCA Paper F3 are examined under the same syllabus and study guide.
FOR EXAMS FROM FEBRUARY 2014 TO AUGUST 2015
FFA/F3 FINANCIAL ACCOUNTING

First edition May 2011
Third edition November 2013
ISBN 9781 4453 7034 7
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CONTENTS
Contents
Page
Finding questions
Question index..............................................................................................................................v
Helping you with your revision......................................................................................................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 (Specimen exam)
 Questions.........................................................................................................................243
 Answers...........................................................................................................................257
 ACCA examiner’s answers..................................................................................................265
Mock exam 2
 Questions.........................................................................................................................271
 Answers...........................................................................................................................287

Review form

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FFA/F3 FINANCIAL ACCOUNTING

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QUESTION INDEX
Question index
Time
Page
allocation
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 2.11 22 26 11 175
Part C: The use of double entry and accounting systems
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
Inventory
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
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FFA/F3 FINANCIAL ACCOUNTING
Time
Page
allocation
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 70 194
Suspense accounts
Questions 16.1 to 16.10 20 24 74 195
Part F: Preparing basic financial statements
15 mark questions: preparing basic financial statements
Questions 17.1 to 17.9 135 162 81 196
Incomplete records
Questions 18.1 to 18.16 32 38 91 209
Company financial statements
Questions 19.1 to 19.22 44 53 95 211
Disclosure notes
Questions 20.1 to 20.10 20 24 101 213
Events after the reporting period
Questions 21.1 to 21.8 16 19 104 213
Statements of cash flows
Questions 22.1 to 22.16 32 38 107 214
Part G: Preparing simple consolidated financial statements
15 mark questions: preparing simple consolidated financial

statements
Questions 23.1 to 23.4 60 72 115 215
Consolidated financial statements
Questions 24.1 to 24.24 48 58 118 221
Part H: Interpretation of financial statements
15 mark question: interpretation of financial statements
Question 25.1 15 18 129 224
Interpretation of financial statements
Questions 26.1 to 26.13 26 31 130 225
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QUESTION INDEX
Time
Page
allocation
Marks Mins Questions Answers
Mixed banks
Mixed bank 1: Questions 27.1 to 27.20 40 48 133 226
Mixed bank 2: Questions 28.1 to 28.20 40 48 139 228
Mixed bank 3: Questions 29.1 to 29.20 40 48 145 230
Mixed bank 4: Questions 30.1 to 30.20 40 48 150 232
Mixed bank 5: Questions 31.1 to 31.20 40 48 156 234
Mixed bank 6: Questions 32.1 to 32.20 40 48 161 236
Mixed bank 7: Questions 33.1 to 33.20 40 48 167 238
Mock exams
Mock exam 1 (Specimen exam) 100 120 243 257
Mock exam 2 100 120 271 287

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FFA/F3 FINANCIAL ACCOUNTING
Helping you with your revision
BPP Learning Media – Approved Learning Partner – content
As ACCA’s Approved Learning Partner – content, BPP Learning Media gives you the opportunity to use
examiner-reviewed revision materials for exams from February 2014 to August 2015. By incorporating
the examiner’s comments and suggestions regarding syllabus coverage, the BPP Learning Media
Practice and Revision Kit provides excellent, ACCA-approved support for your revision.
Selecting questions
We provide signposts to help you plan your revision.
 A full question index listing questions that cover each part of the syllabus, so that you can locate
the questions that provide practice on key topics, and see the different ways in which they might
be tested
Attempting mock exams
There are two mock exams that provide practice at coping with the pressures of the exam day. We
strongly recommend that you attempt them under exam conditions. Mock exam 1 is the Specimen
exam. Mock exam 2 reflects the question styles and syllabus coverage of the exam.
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USING YOUR BPP PRACTICE AND REVISION KIT
Using your BPP Practice and Revision Kit
Aim of this Practice and Revision Kit
To provide the practice to help you succeed in both the paper based and computer based examinations
for Paper FFA/F3 Financial Accounting.
To pass the examination you need a thorough understanding in all areas covered by the syllabus and
teaching guide.
Recommended approach
 Make sure you are able to answer questions on everything specified by the syllabus and teaching
guide. You cannot make any assumptions about what questions may come up on your paper. The
examiners aim to discourage 'question spotting'.
 Learning is an active process. Use the DO YOU KNOW? Checklists to test your knowledge and
understanding of the topics covered in FFA/F3 Financial Accounting by filling in the blank
spaces. Then check your answers against the DID YOU KNOW? Checklists. Do not attempt any
questions if you are unable to fill in any of the blanks - go back to your BPP Interactive Text and
revise first.
 When you are revising a topic, think about the mistakes that you know that you should avoid by
writing down POSSIBLE PITFALLS at the end of each DO YOU KNOW? Checklist.
 Once you have completed the checklists successfully, you should attempt the questions on that
topic. Each question is worth 2 marks and carries with it a time allocation of 2.4 minutes.
 Once you have completed all of the questions in the body of this Practice & Revision Kit, you
should attempt the MOCK EXAMS under examination conditions. Check your answers against our
answers to find out how well you did.
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