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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

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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

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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