ACCA COMPREHENSIVE EXAM 150 - LATEST PRACTICE
QUESTIONS AND 100% VERIFIED CORRECT ANSWERS |
COMPLETE EXAM PREP TESTBANK | GUARANTEED PASS |
INSTANT DOWNLOAD PDF
Examination Overview:
This comprehensive ACCA-style assessment reflects the breadth and depth of the ACCA Qualification
syllabus across Applied Knowledge, Applied Skills, and Strategic Professional levels. It integrates topics
from:
Business and Technology (BT) – 15 questions
Management Accounting (MA) – 15 questions
Financial Accounting (FA) – 20 questions
Corporate and Business Law (LW) – 15 questions
Performance Management (PM) – 20 questions
Taxation (TX) – 20 questions
Financial Reporting (FR) – 20 questions
Audit and Assurance (AA) – 15 questions
Financial Management (FM) – 10 questions
The exam consists of 150 multiple-choice questions divided into three sections. Questions include
theoretical knowledge, scenario-based applications, calculations, ethics, professional standards, laws, and
real-world business decision-making consistent with ACCA examination patterns.
1. Which of the following best describes the primary objective of corporate
governance?
A. Maximising short-term profits
B. Minimising tax liabilities
C. Ensuring accountability and stewardship of management to
stakeholders
D. Eliminating business risk
Rationale: Corporate governance focuses on accountability, transparency, and
stewardship of management in protecting stakeholder interests.
2. In a functional organisational structure, authority is primarily:
A. Based on project teams
, B. Divided according to specialised functions
C. Shared equally among employees
D. Controlled by external regulators
Rationale: Functional structures organise authority by departments such as
finance, HR, and marketing.
3. A company operates in a highly competitive market with many similar
products. According to Porter’s generic strategies, which strategy is most
appropriate?
A. Diversification
B. Cost leadership
C. Vertical integration
D. Liquidation
Rationale: Cost leadership helps firms compete in price-sensitive competitive
markets.
4. In management accounting, which cost is relevant for decision-making?
A. Sunk cost
B. Historical cost
C. Opportunity cost
D. Absorbed overhead
Rationale: Opportunity costs represent the benefit foregone and are relevant in
decisions.
5. Contribution per unit equals:
A. Selling price – Fixed cost
, B. Selling price – Variable cost
C. Fixed cost – Variable cost
D. Total cost – Profit
Rationale: Contribution is calculated as selling price minus variable cost.
6. Break-even point (units) equals:
A. Fixed costs × Contribution
B. Fixed costs ÷ Contribution per unit
C. Contribution ÷ Fixed costs
D. Sales ÷ Fixed costs
Rationale: Break-even formula is Fixed costs divided by contribution per unit.
7. Under IFRS, revenue is recognised when:
A. Cash is received
B. Invoice is issued
C. Performance obligation is satisfied
D. Production begins
Rationale: IFRS 15 recognises revenue upon satisfying performance obligations.
8. Which of the following is a liability under the Conceptual Framework?
A. A potential future sale
B. A present obligation arising from past events
C. Share capital
D. Forecast expenses
Rationale: A liability is a present obligation from past events.
, 9. Inventory is measured at:
A. Cost only
B. Selling price
C. Lower of cost and net realisable value
D. Replacement cost
Rationale: IAS 2 requires inventory at lower of cost and NRV.
10.Which ratio measures liquidity?
A. Gross profit margin
B. ROCE
C. Current ratio
D. Asset turnover
Rationale: Current ratio assesses short-term liquidity.
11.Agency theory explains conflict between:
A. Managers and suppliers
B. Shareholders and directors
C. Government and firms
D. Customers and employees
Rationale: Agency theory addresses principal-agent conflicts.
12.The main purpose of internal control is to:
A. Increase sales
B. Eliminate all risk
C. Provide reasonable assurance over objectives
D. Replace management
QUESTIONS AND 100% VERIFIED CORRECT ANSWERS |
COMPLETE EXAM PREP TESTBANK | GUARANTEED PASS |
INSTANT DOWNLOAD PDF
Examination Overview:
This comprehensive ACCA-style assessment reflects the breadth and depth of the ACCA Qualification
syllabus across Applied Knowledge, Applied Skills, and Strategic Professional levels. It integrates topics
from:
Business and Technology (BT) – 15 questions
Management Accounting (MA) – 15 questions
Financial Accounting (FA) – 20 questions
Corporate and Business Law (LW) – 15 questions
Performance Management (PM) – 20 questions
Taxation (TX) – 20 questions
Financial Reporting (FR) – 20 questions
Audit and Assurance (AA) – 15 questions
Financial Management (FM) – 10 questions
The exam consists of 150 multiple-choice questions divided into three sections. Questions include
theoretical knowledge, scenario-based applications, calculations, ethics, professional standards, laws, and
real-world business decision-making consistent with ACCA examination patterns.
1. Which of the following best describes the primary objective of corporate
governance?
A. Maximising short-term profits
B. Minimising tax liabilities
C. Ensuring accountability and stewardship of management to
stakeholders
D. Eliminating business risk
Rationale: Corporate governance focuses on accountability, transparency, and
stewardship of management in protecting stakeholder interests.
2. In a functional organisational structure, authority is primarily:
A. Based on project teams
, B. Divided according to specialised functions
C. Shared equally among employees
D. Controlled by external regulators
Rationale: Functional structures organise authority by departments such as
finance, HR, and marketing.
3. A company operates in a highly competitive market with many similar
products. According to Porter’s generic strategies, which strategy is most
appropriate?
A. Diversification
B. Cost leadership
C. Vertical integration
D. Liquidation
Rationale: Cost leadership helps firms compete in price-sensitive competitive
markets.
4. In management accounting, which cost is relevant for decision-making?
A. Sunk cost
B. Historical cost
C. Opportunity cost
D. Absorbed overhead
Rationale: Opportunity costs represent the benefit foregone and are relevant in
decisions.
5. Contribution per unit equals:
A. Selling price – Fixed cost
, B. Selling price – Variable cost
C. Fixed cost – Variable cost
D. Total cost – Profit
Rationale: Contribution is calculated as selling price minus variable cost.
6. Break-even point (units) equals:
A. Fixed costs × Contribution
B. Fixed costs ÷ Contribution per unit
C. Contribution ÷ Fixed costs
D. Sales ÷ Fixed costs
Rationale: Break-even formula is Fixed costs divided by contribution per unit.
7. Under IFRS, revenue is recognised when:
A. Cash is received
B. Invoice is issued
C. Performance obligation is satisfied
D. Production begins
Rationale: IFRS 15 recognises revenue upon satisfying performance obligations.
8. Which of the following is a liability under the Conceptual Framework?
A. A potential future sale
B. A present obligation arising from past events
C. Share capital
D. Forecast expenses
Rationale: A liability is a present obligation from past events.
, 9. Inventory is measured at:
A. Cost only
B. Selling price
C. Lower of cost and net realisable value
D. Replacement cost
Rationale: IAS 2 requires inventory at lower of cost and NRV.
10.Which ratio measures liquidity?
A. Gross profit margin
B. ROCE
C. Current ratio
D. Asset turnover
Rationale: Current ratio assesses short-term liquidity.
11.Agency theory explains conflict between:
A. Managers and suppliers
B. Shareholders and directors
C. Government and firms
D. Customers and employees
Rationale: Agency theory addresses principal-agent conflicts.
12.The main purpose of internal control is to:
A. Increase sales
B. Eliminate all risk
C. Provide reasonable assurance over objectives
D. Replace management
