ACCA Financial Accounting
The FA course rule by rule
Short lessons that start with a business situation and explain why each rule works, then exam-style questions to check it. Chapters follow the official syllabus.
Story
A business situation, the rule behind it, and a quick check.
Why?
One rule explored to the bottom. Ends with "myth or fact".
Chapter test
The chapter finale: questions with three lives.
FA 1
Why every transaction has two sides, how debits and credits record them in the accounts, and how profit comes out of the accounts.
- Story
Leyla's stall
The business is separate from its owner, and every event changes what it owns and owes.
- Why?
Debit, credit and why there are two
Accounts, debits and credits, DEAD CLIC: why every transaction has two sides.
- Worked example
June in the accounts
Leyla's June: journal entries, T-accounts, balancing off and the month's profit.
- Find the error
The cousin bookkeeper
A cousin wrote up June with mistakes. Find them and put them right.
- Practice
Exam-format practice
Ten Section A questions on double entry.
- Chapter test
Chapter boss
Twelve questions in 15 minutes, three lives.
FA 2
Which document starts which entry, how sales tax passes through the accounts, and why a trade discount never reaches the books while a settlement discount reduces revenue.
- Story
Polad's paper trail
One order from quotation to payment, and the documents it leaves behind.
- Why?
Day books, ledgers and the petty cash tin
Books of prime entry, the general ledger, control accounts and an imprest petty cash.
- Worked example
The sales tax account
Tax on top and from inside, March's entries and the balance on the sales tax account.
- Find the error
Sevda's invoice
Sevda's first invoice: a trade discount, a settlement discount and where she went wrong.
- Practice
Exam-format practice
Ten Section A questions: documents, sales tax, discounts.
- Chapter test
Chapter boss
Twelve questions in 15 minutes, three lives.
FA 3
Why unsold goods are an asset, how IAS 2 values them, and how the year's purchases become cost of sales.
- Story
The count on 31 December
Why the warehouse is counted at the year end, and why goods are not valued at selling price.
- Why?
The lower of the two
Cost or net realisable value; what goes into cost; the methods allowed.
- Worked example
Three methods on the same figures
FIFO, periodic and continuous AVCO for one tea; cost of sales and the closing inventory journal.
- Find the error
Aysel's valuation
Aysel's warehouse valuation breaks IAS 2 three times. Find where.
- Practice
Exam-format practice
Ten Section A questions on inventory and cost of sales.
- Chapter test
The chapter's final battle
Ten questions in 13 minutes, three lives.
FA 4
What goes into an asset's cost, why we depreciate it, how to choose a method, and how to record selling or trading in an old asset.
- Story
A 24,000 oven that costs 26,000
Non-current assets, capital and revenue expenditure.
- Why?
Why depreciate
The accrual basis for assets, choosing a method, and the asset register.
- Worked example
The bakery's year in the ledger
Depreciation by both methods, the cost and disposal accounts with a part exchange, a change in useful life.
- Find the error
Tofiq's working
A forgotten part-exchange allowance and reducing balance charged on cost.
- Practice
Exam-format practice
Ten Section A questions on non-current assets.
- Chapter test
Chapter boss fight
Twelve questions in 15 minutes, three lives.
FA 5
Why a rise in a building's value is not profit, where the revaluation surplus goes, and when development costs become an asset.
- Story
The building is worth more
A hotel building revalued and a start-up's costs: which are assets, and where the gain goes.
- Why?
The revaluation surplus and the development rules
The revaluation journal, the new depreciation and the reserve transfer; research versus development.
- Worked example
Elvin's and Sabina's year
Revaluation, depreciation, the reserve transfer and the sale of the building; capitalising and amortising development.
- Find the error
Aytən's draft
A new bookkeeper recorded the revaluation and the development. Find the four mistakes.
- Practice
Exam-format practice
Ten Section A questions on revaluation and intangible assets, including a property, plant and equipment note.
- Chapter test
The chapter's final battle
Ten questions in 13 minutes, three lives.
FA 6
Why a year's expense is not what was paid during the year, and how four year-end adjustments turn cash into profit.
- Story
The electricity bill arrives in February
The accrual basis: a year's expense is not what was paid during the year.
- Why?
Four journal entries
The four year-end adjustments, their journals and the reversal.
- Worked example
The rent account for the year
The 2026 rent two ways: month by month and through the ledger account.
- Find the error
Kamran's workings
Every figure is in Kamran's workings, but the signs are wrong.
- Practice
Exam-style practice
Ten Section A questions on accruals and prepayments.
- Chapter test
Chapter boss
Twelve questions in 15 minutes, three lives.
FA 7
Why sell on credit, when a debt is written off and when an allowance is made, why only the change in the allowance reaches profit, and how to agree balances with suppliers.
- Story
Credit for restaurants
Why a business sells on credit, and what it costs.
- Why?
Write-off or allowance
Writing off an irrecoverable debt, the allowance, and why only its change goes to profit.
- Worked example
Rəşad's year end
Rəşad's year end in order: the contra, the write-off, the allowance, a recovered debt and a supplier statement.
- Find the error
Ayan's working
Ayan worked out the allowance and the expense. Find his mistakes.
- Practice
Exam-format practice
Ten Section A questions on receivables, the allowance and payables.
- Chapter test
Chapter boss
Ten questions in 13 minutes, three lives.
FA 8
When a future payment is already a liability, when it only goes in a note, and which events after 31 December change the year's figures.
- Story
The year is closed, but the news keeps coming
Warranties, lawsuits and a fire: which of them is already a liability of 2026.
- Why?
Probable, possible, remote
Provisions, contingent liabilities and contingent assets; adjusting and non-adjusting events.
- Worked example
The warranty provision
The expected cost of warranties, the journal for the movement and the provisions note.
- Find the error
Rauf's six adjustments
Rauf booked everything he heard about, even what must not be booked.
- Practice
Exam-format practice
Ten Section A questions: classify, measure and present.
- Chapter test
The chapter boss
Ten questions in 13 minutes, three lives.
FA 9
Why the cash book and the bank statement disagree, which differences are corrected by an entry and which only appear on the reconciliation, and how to reconcile a supplier's account to its statement the same way.
- Story
The cash book and the statement disagree
The cash book and the bank statement are 2,150 apart. Which is right?
- Why?
Fix the books or just explain the gap
For each item: correct the book, or only explain the gap in the reconciliation.
- Worked example
Günay's reconciliation, step by step
The corrected cash book, the bank reconciliation and the supplier reconciliation.
- Find the error
Samir's shortcut
Samir made the cash book match the statement. What did he get wrong?
- Practice
Exam-format practice
Ten Section A questions on bank and supplier reconciliations.
- Chapter test
Chapter boss
Ten questions in 13 minutes, three lives.
FA 10
What the trial balance catches and what it misses, the six types of error, correcting journals and how to clear the suspense account to nil.
- Story
The trial balance does not agree
The trial balance is 1,850 out. Where the difference comes from and what to do with it.
- Why?
Six errors the trial balance cannot see
The errors a trial balance reveals, and six it cannot see.
- Worked example
Clearing suspense to nil
Seven errors: the correcting journals, suspense cleared to nil and the corrected profit.
- Find the error
Half a reversal
Orxan reversed an error only halfway. Find what is left.
- Practice
Exam-style practice
Ten Section A questions on errors and the suspense account.
- Chapter test
Chapter boss
Twelve questions in 15 minutes, three lives.
FA 11
How a company differs from a sole trader and a partnership, how to record share issues, bonus and rights issues, why a dividend is not an expense, and how to work out tax with last year's under-provision.
- Story
From partnership to company
Sole trader, partnership and company: who answers for what.
- Why?
What a company's equity is made of
Shares, share premium, reserves, preference shares, bonus and rights issues, dividends.
- Worked example
Dənə Roasters' year
An issue at a premium, rights, bonus, dividends, interest and tax, and the result in the statement of changes in equity.
- Find the error
Nicat's draft
A dividend in expenses and a bonus issue that "added" equity.
- Practice
Exam-format practice
Ten Section A questions on shares, dividends, interest and tax.
- Chapter test
Chapter boss fight
Ten questions in 13 minutes, three lives.
FA 12
Who reads financial statements and why, who writes the rules, the concepts and qualitative characteristics behind them, and how a trial balance with year-end adjustments becomes a statement of profit or loss in the IFRS 18 layout, a statement of financial position and the notes.
- Story
The bank asks for the accounts
What financial reporting is, who reads it, and the four statements it is made of.
- Why?
The rules of the game: who writes them and what they rest on
The IFRS Foundation, IASB and ISSB; directors' duties; the accounting concepts and the qualitative characteristics of useful information.
- Worked example
From Ipək Yolu's trial balance to its statements
Year-end adjustments, the statement of profit or loss in the IFRS 18 layout, the SOCE, the statement of financial position and the notes.
- Find the error
Orxan's draft
Finance costs inside operating profit and a revaluation gain in profit.
- Practice
Exam-format practice
A 15-mark MTQ (statement of financial position) and six Section A questions on the concepts.
- Chapter test
Chapter boss fight
One timed MTQ and six questions, 33 minutes, three lives.
FA 13
Why profit is not cash, how to prepare a statement of cash flows by the indirect and direct methods under IAS 7 as amended by IFRS 18, and how to rebuild missing figures when there are no proper books.
- Story
Profit, but no cash
A tile importer with a profit and an empty bank account; a market trader whose records were washed away.
- Why?
Three activities and two methods
Operating, investing and financing activities; the direct and indirect methods; what the statement does and does not tell users.
- Worked example
Where Kaşı Dünyası's cash went
A statement of cash flows from two statements of financial position: working capital, a disposal, tax and dividends; then the direct method.
- Find the error
Aysel's draft
An increase in receivables with a plus sign, and interest in two sections at once.
- Practice
Practice: incomplete records and cash flows
Rebuild Gülnarə's year, then Section A questions on incomplete records and cash flows.
- Chapter test
Chapter boss fight
Twelve questions in 15 minutes on cash flows and incomplete records, three lives.
FA 14
Control and significant influence, goodwill with the NCI at fair value, intra-group balances and unrealised profit, a mid-year acquisition and the equity method: the consolidated statement of financial position and statement of profit or loss for the MTQ.
- Story
Xəzər Market buys a dairy
Subsidiary, associate and trade investment: who controls whom.
- Why?
One economic unit
Why 100% is added, where goodwill comes from, why intra-group balances and unrealised profit disappear, and what the equity method is.
- Worked example
Xəzər Market's consolidated SOFP
The five standard workings: group structure, net assets, goodwill, NCI, group retained earnings, and then the statement itself.
- Find the error
The statement where the group earned too much
Unrealised profit on a margin instead of a mark-up, and twelve months of a subsidiary bought in September.
- Practice
Exam-format practice
A 15-mark MTQ: a consolidated statement of profit or loss with a mid-year acquisition and two interpretation tasks; then twelve Section A questions.
- Chapter test
Chapter boss fight
A 15-mark MTQ on the consolidated SOFP and six Section A questions in 33 minutes, three lives.
FA 15
Profitability, liquidity, efficiency and position ratios: how to calculate them, how they are linked, and how to draw a conclusion for a bank from the facts in the scenario.
- Story
Same profit, different risk
Who analyses financial statements and why, and why profit alone is not enough.
- Why?
Four groups of ratios and how they are linked
The formulas, what each ratio means, ROCE as margin × turnover, and the causes that move ratios.
- Worked example
Two pharmacies: the ratios and a conclusion for the bank
Şəfa Aptek's and Dərman Evi's ratios in all four groups, and a note for Bulvar Bank.
- Find the error
The trainee's note
ROCE on profit for the year, and a current ratio that "fell because of revenue".
- Practice
Exam-format practice
Ten Section A questions: calculate a ratio and explain how it moved.
- Chapter test
Chapter boss
Ten questions in 13 minutes, three lives.