Financial Accounting
Master the fundamentals of financial accounting including double-entry bookkeeping, preparing financial statements, and interpreting financial information. The essential foundation for your ACCA qualification.
Exam Duration
2 hours
Pass Mark
50%
Students
30,000+
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ACCA Financial Accounting
Financial Accounting (FA) is a fundamental paper in the ACCA Applied Knowledge module that introduces students to the principles and practices of financial accounting. It covers the entire financial accounting cycle from recording individual transactions through to preparing complete financial statements.
Students learn the context and purpose of financial reporting, underlying accounting principles and concepts, double-entry bookkeeping, recording transactions for assets, liabilities, income and expenses, reconciliations, trial balance preparation, and the preparation and interpretation of financial statements for single entities and simple groups.
FA is critical to your ACCA journey as it provides the technical accounting foundation that is built upon in Financial Reporting (FR) at the Applied Skills level and Strategic Business Reporting (SBR) at the Strategic Professional level.
What You'll Learn
- Explain the context and purpose of financial reporting for external users
- Apply accounting principles, concepts, and qualitative characteristics
- Record transactions using double-entry bookkeeping and accounting systems
- Prepare a trial balance and correct errors
- Prepare financial statements for single entities and simple groups
- Interpret financial statements using ratio analysis
Career Relevance
FA equips you with the core financial accounting skills required in virtually every accounting role. Whether you work in practice, industry, or the public sector, the ability to prepare and interpret financial statements is fundamental to your career.
Exam Format
- Duration:2 hours
- Pass Mark:50%
- Format:FA is a 2-hour computer-based exam (CBE) with two sections. Section A: 35 objective test questions worth 2 marks each (70 marks). Section B: 2 multi-task questions (MTQs) worth 15 marks each (30 marks). All questions are compulsory. Total 100 marks; on-demand at ACCA exam centres; 50% pass mark.
Prerequisites
No prerequisites — this is an entry-level ACCA paper suitable for those beginning their ACCA qualification.
FA Exam Syllabus
The FA syllabus covers the key topics you'll be examined on.
- The scope and purpose of financial statements for external reporting
- Stakeholders' needs
- The main elements of financial reports
- The regulatory framework
- Duties and responsibilities of those charged with governance
- The qualitative characteristics of financial information
- Qualitative characteristics of useful financial information
- Double-entry bookkeeping principles including the maintenance of accounting records
- General ledger accounts and journal entries
- Sales and purchases
- Cash
- Inventories
- Tangible non-current assets
- Depreciation
- Intangible non-current assets and amortisation
- Accrued expenses, prepaid expenses, accrued income, and deferred income
- Receivables and payables
- Provisions and contingencies
- Capital structure and finance costs
- Bank reconciliations
- Payables account reconciliations
- Trial balance
- Correction of errors
- Suspense accounts
- Statement of financial position
- Statement of profit or loss and other comprehensive income
- Disclosure notes
- Events after the reporting period
- Statement of cash flows (excluding partnerships)
- Incomplete records
- Subsidiaries
- Associates
- Importance and purpose of analysis of financial statements
- Ratios
- Analysis of financial statements
ACCA FA Exam Structure
Everything you need to know about the FA exam format, timing, and what to expect on exam day.
Computer-Based Exam (CBE)
2 hours
FA is a 2-hour computer-based exam (CBE) with two sections. Section A: 35 objective test questions worth 2 marks each (70 marks). Section B: 2 multi-task questions (MTQs) worth 15 marks each (30 marks). All questions are compulsory. Total 100 marks; on-demand at ACCA exam centres; 50% pass mark.
Available on demand at ACCA exam centres
50%
Your Guide To Pass ACCA FA
Expert tips from our tutors to help you prepare effectively and pass your FA exam on the first attempt.
Master Double-Entry
Double-entry bookkeeping is the foundation of FA. Ensure you can confidently record debits and credits for all transaction types before attempting financial statement preparation.
Practice Financial Statements
Regularly practice preparing statements of financial position, profit or loss, and cash flows. These are heavily tested topics that require repeated practice.
Learn the Adjustments
Accruals, prepayments, depreciation, and provisions feature prominently in FA. Understand the journal entries and their impact on financial statements.
Understand Consolidation Basics
Basic group accounting (subsidiaries and associates) is tested in FA. Learn the key consolidation adjustments including goodwill and non-controlling interests.
Practice Reconciliations
Bank reconciliations and control account reconciliations are commonly tested. Practice these until you can complete them quickly and accurately.
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Everything you need to know about the Financial Accounting exam and how to prepare for it.
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