ACCA Financial Accounting
The purpose of this article is to introduce you to ACCA Financial Accounting, particularly the applied knowledge level within financial accounting, which focuses on the way businesses work as well as the basics of accountancy and how an accountant’s role fits into the world of business.
There are three papers for this level
Business and Technology
This looks at business strategy and the all-pervasive and underlying technology that currently affects business performance.
Financial Accounting
This looks at financial reporting and how accountants report to external stakeholders in the business.
Management Accounting
Focuses on the internal role of the accountant; to help improve business performance by guiding better decision making.
The financial accounting paper looks at the reasons behind financial reporting and provides context in each of their purpose. It introduces students to high quality financial information and the various different characteristics displayed within it. It also looks at double entry bookkeeping, accounting systems and how transactions and events are recorded within those systems.
Students will work towards producing a trial balance, for example: identifying problems within a trial balance and rectifying them ahead of preparing basic financial statements for both incorporated and unincorporated entities.
Consolidated financial statements (group accounts) are also a focus in this level. For example, it looks at how group accounts are prepared, as well as how financial statements are read and interpreted for a group setting.
Exam Structure
It’s a computer-based, two-hour paper with a 50% pass mark. The exam is an objective test; much broader than simply answering multiple choice questions. For example, you may be given a small scenario and you have to select a correct answer from a list, sometimes you will be asked to select a ‘true’ or ‘false’ answer, you may be asked to select multiple answers or you may even be asked to select an answer from a drop-down list. You may also need to enter correct figures in a blank space to answer a question.
The exam is split into two sections
Section A covers 70% of the exam – 70 marks out of 100 (35 two-mark questions).
Section B covers 30% of the exam – 30 marks out of 100 (2 fifteen-mark multi-task questions).
For section B, the two multi-task questions will each include a scenario followed by several tasks. This section of the exam also focuses on consolidation and accounts preparation.
During your exam, you may also be required to interpret your prepared consolidated accounts for either a sole trader or a limited company.
Useful exam tips
Book your exam early!
It’s a great idea to set an exam date and get it booked it at the very start. Accountants, like most of us, are very deadline driven! Having that date set in the diary is great for overall motivation while studying. You will have the drive to set yourself studying goals to prepare for your exam and you will feel more motivated whilst doing so! Get lots of practice behind you on the run up to your exam. Do this on a computer so it’s similar to the real exam. Use tools that replicate exam conditions and use them as often as you can.
Here at Practice Tests Academy, we have the best tools to help you study in the most effective way! ACCA also have a practice platform on their website.
Finally
In the run up to your exam, practice the whole syllabus. Don’t just pick areas where you feel most comfortable. That might give you some confidence, but you’re actually not helping yourself if you’re not focusing on the whole syllabus. There are no optional questions in this exam, so you must go in fully prepared. You should be focusing on stuff that you CAN’T understand clearly in the run-up to your exam.
For effective studying, keep a diary. Set yourself study days throughout the week in the run up to your exam. Write down goals and achieve them!
Try to have a study break for at least 1 day a week, if possible.
Take regular breaks even if you don’t feel like it. If you’re sitting down to study for three or four hours, stop and have a 10-minute break after 45 minutes; have a drink, walk around, avoid the feeling of being tired and drained after studying for too long without breaks.
Overall, remember this: it’s relatively short-term pain for long-term gain. The rest of your career will benefit from passing these exams. You can do this!
We wish you the very best with your studies and the very best of luck with your exam.
