ICAEW ACA: Accounting Mock Test

Overview of the ICAEW ACA Accounting Exam

The ICAEW ACA Accounting module is one of the six fundamental modules comprising the Certificate Level of the Institute of Chartered Accountants in England and Wales (ICAEW) Chartered Accountant qualification. As a foundational pillar of the ACA qualification, the Accounting assessment ensures that candidates possess a thorough operational grounding in the techniques of double-entry bookkeeping, the recording of routine and non-routine business transactions, and the preparation of basic financial statements for sole traders, partnerships, and single entity limited companies.

The exam is delivered as an on-demand, computer-based exam (CBE) administered either at approved Pearson VUE test centres or via remote invigilation. It assesses practical mechanics, precision in numerical calculations, and an applied comprehension of fundamental accounting concepts under UK GAAP and International Financial Reporting Standards (IFRS).

Exam Format and Structure

The assessment lasts 90 minutes (1.5 hours) and carries a total of 100 marks. The test structure combines objective test questions and multi-part scenario questions:

• Objective Test Questions (OTQs): Multiple-choice, multiple-response, drag-and-drop, and numeric entry questions that cover technical knowledge, error classification, and specific ledger account balances.
• Scenario-Based Questions: Longer, multi-part practical problems typically requiring candidates to prepare extracts or full statements of profit or loss, statements of financial position, control account reconciliations, or adjust trial balances after correcting accounting errors.

Candidates must answer all questions presented within the allotted time. There is no scheduled break during the 90-minute testing window.

Comprehensive Syllabus Breakdown

The syllabus is structured across several key learning areas defined by the ICAEW syllabus guidelines:

1. Maintaining Financial Records and Double-Entry Principles

Candidates must demonstrate mastery of the ledger accounting system, recording transactions in primary books of entry (sales, purchases, cash books, petty cash, and general journals) and posting debits and credits accurately to nominal ledger accounts.

2. Year-End Adjustments and Trial Balance

This section evaluates the preparation and adjustment of the trial balance, covering accruals, prepayments, irrecoverable debts, allowances for receivables, and adjustments for goods sold on sale-or-return terms.

3. Non-Current Assets and Inventory

Candidates are tested on accounting for property, plant, and equipment (PPE), calculating depreciation using straight-line and reducing-balance methods, disposals, revaluations, and determining closing inventory valuations using FIFO and weighted average cost (AVCO) rules in accordance with IAS 2.

4. Control Accounts, Bank Reconciliations, and Suspense Accounts

This area focuses on investigating discrepancies between cash books and bank statements, reconciling receivables and payables ledgers with control accounts, opening suspense accounts to clear trial balance imbalances, and eliminating errors using correcting journal entries.

5. Preparation of Financial Statements

Candidates must construct statements of financial position and statements of profit or loss for sole proprietorships, partnerships (including profit-sharing ratios, interest on capital, and drawings), and incorporated limited companies in accordance with standard formats.

6. Regulatory Framework and Accounting Concepts

This module covers fundamental concepts such as going concern, accruals, prudence, materiality, faithful representation, and the purpose of statutory accounting standards under UK and international frameworks.

Scoring Criteria and Pass Mark

• Passing Standard: The pass mark for the ICAEW ACA Accounting module is 55% (55 out of 100 marks).
• Scoring System: Each question is allocated predetermined marks based on complexity. Objective test questions are automatically marked by the software.
• Negative Marking: There is no negative marking for incorrect choices, meaning candidates should ensure no question is left unanswered.
• Results Delivery: Results are typically issued to candidate dashboards within 24 to 48 hours following the completion of the assessment.

Official Test Rules and Candidate Requirements

• Identification: Candidates must present valid, government-issued photo identification (such as a passport or UK photocard driving licence) that matches their ICAEW registered name exactly.
• Permitted Calculators: Only specified non-programmable, battery-operated scientific or basic calculators without text storage or graphing functions are permitted. The software interface also supplies an on-screen basic calculator.
• Prohibited Items: Mobile phones, smartwatches, notebooks, study materials, and external digital media are strictly forbidden inside the testing environment.
• Candidate Scratchpad: In-person test centres supply dry-erase boards and markers for workings. Remote candidates are provided an integrated digital scratchpad within the testing software.
• Retake Policy: ICAEW enforces strict limits on attempts. Candidates are generally permitted a maximum of four attempts at any Certificate Level module before being deemed ineligible to complete the ACA.

Essential Preparation and Exam Strategy Tips

• Master T-Accounts First: Almost every adjustment question can be simplified by sketching quick nominal T-accounts on your scratchpad to ensure balancing entries are applied correctly.
• Practice Timed Mock Exams: With 90 minutes for comprehensive accounting tasks, pacing is critical. Aim to spend no more than 2 minutes on standard objective questions to preserve time for complex financial statement questions.
• Focus Heavily on Control Accounts and Suspense Accounts: These topics appear frequently and represent a major source of dropped marks due to signs being reversed in journal corrections.
• Work Through the Official ICAEW Question Bank: Consistently working through past exam-style question banks ensures complete familiarity with exam wording, format variants, and standard adjustment scenarios.