ACA Practice Test

ACA Exam at a Glance

What changed for ACA in 2026

• Oct 25, 2026: Eligibility changed to Training agreement with 450 days of professional work experience (previously Training agreement incl. 450 days of professional work experience).^[4]

ACA Study Tips

• Create a structured study schedule at least 4-6 weeks before your ACA exam date.
• Focus on understanding core concepts rather than memorising answers for the ICAEW Associate Chartered Accountant.
• Use our free practice tests to identify weak areas and track your progress over time.
• Review the official ACA exam syllabus to ensure complete topic coverage.
• Take timed practice sessions to build your exam pace and reduce test-day anxiety.

Free ACA ICAEW Study Tools

Interactive ACA ICAEW resources on PracticeTestGeeks, free to start:

• ACA ICAEW flashcards — review key terms and concepts card by card
• ACA ICAEW study guide — topic-by-topic overview of what the exam covers
• ACA ICAEW cheat sheet — one-page printable summary for last-minute review

According to ICAEW, “There are 14 Next Generation ACA exams spread over three levels: the Certificate Level, the Professional Level and the Advanced Level.”^[1]

Worked examples: how to reason through ACA questions

These are practice questions written for this site, not questions from the real exam. Each explanation shows why the right answer is right and why the others are wrong.

Example 1

Question: Which of the following best describes the payback period method of investment appraisal?

1. The time taken for cumulative net cash flows to equal the initial investment
2. The total profit generated by the investment over its life
3. The internal rate of return on the investment
4. The discounted value of all future cash flows

Answer: A. The time taken for cumulative net cash flows to equal the initial investment

Explanation:

Payback period is the time taken for cumulative net cash flows to equal the initial investment, so option A is right. Option B describes total profit, which payback ignores because it only asks when the money comes back. Option C is the internal rate of return, a different appraisal method that finds the discount rate giving a zero net present value. Option D is the discounted value of future cash flows, which is closer to net present value.

Rule to remember: simple payback looks at timing only. It ignores the time value of money and any cash flows after the payback point, which is why it is usually read alongside a method such as net present value.

Example 2

Question: Under IAS 1, the statement of financial position (balance sheet) must present current and non-current assets and liabilities separately unless:

1. The entity is a small company
2. A liquidity-based presentation provides more reliable information
3. The entity uses UK GAAP
4. The entity is a charity

Answer: B. A liquidity-based presentation provides more reliable information

Explanation:

Option B is right. IAS 1 expects a current and non-current split, but allows a liquidity-based presentation when it gives more reliable information. Banks and similar institutions are the usual example. Option A is wrong because size alone does not remove the requirement. Option C is wrong because the choice of UK GAAP does not decide this IAS 1 point. Option D is wrong because being a charity is not the stated exception.

Rule to remember: the default is a current and non-current split. The exception depends on which presentation is more reliable for users, not on the type or size of the entity.

Example 3

Question: A UK company purchases inventory for £12,000 plus VAT at 20%. The company is VAT-registered. At what value should the inventory be initially recorded?

1. £14,400
2. £12,000
3. £12,400
4. £10,000

Answer: B. £12,000

Explanation:

Option B, £12,000, is right. A VAT-registered company can recover input VAT from HMRC, so the VAT is not part of the cost of the inventory. It is recorded as a receivable instead. Option A, £14,400, wrongly adds VAT to the price and then adds it again as if the rate were higher. Option C, £12,400, applies a rate that does not match the 20% given. Option D, £10,000, takes the VAT out of a figure that never included it.

Rule to remember: for a VAT-registered business, record inventory at the net price. Recoverable VAT is not a cost.

How to use these practice tests

Start with the official ICAEW material for the exam you are booked on. Read the syllabus or learning outcomes for that paper and note the topics you cannot yet explain in your own words. Then use our practice sets as a check on those topics rather than as a replacement for the study manual.

Pick the set that matches your paper, for example Financial Accounting and Reporting, Tax Compliance, Business Strategy or Professional Ethics. Work through it untimed at the start and read every explanation, including those for questions you got right. Keep a short list of the rules you got wrong, and rework those topics from the official text before you try the set again.

As your exam gets closer, switch to timed attempts that match the duration of your paper, which you can find on the ICAEW exam pages. Practise on a computer, because the real exam is computer-based. If you are sitting remotely, check the ICAEW technical requirements for remote sitting well ahead of your booking.

Our questions are written by us and are not real exam questions. Use them to find gaps, and rely on ICAEW materials for the standard you will be tested to.

Ready to Pass the ACA?

Join thousands of candidates who have used our free practice tests to prepare for the ICAEW Associate Chartered Accountant. Start practising today and build the confidence you need to succeed. Practice with the free ACA ICAEW practice test on PracticeTestGeeks (7 questions with answer explanations).

For more in-depth preparation strategies, read our FCTC Hiring Process — covering exam format, scoring, and proven study techniques.

Sample ACA ICAEW Practice Questions

Try these questions from our free ACA ICAEW practice tests. The correct answer and an explanation follow each question.

1. Under the ICAEW Code, professional accountants in business have the same ethical obligations as those in practice. If a finance director is instructed to falsify accounts, they should:

   • A. Comply if the instruction comes from the CEO
   • B. Refuse and consider whistleblowing through appropriate channels
   • C. Simply resign without further action
   • D. Prepare the accounts as instructed and disclose in the notes

Answer: B. Refuse and consider whistleblowing through appropriate channels

A finance director (accountant in business) must refuse instructions that would involve preparing misleading financial statements; depending on circumstances they may need to escalate internally or through external whistleblowing channels.

Answer: B. Overseeing the integrity of financial reporting and the effectiveness of internal and external audit

The UK Corporate Governance Code requires listed companies to establish an audit committee responsible for monitoring the integrity of financial statements, reviewing internal controls, overseeing the relationship with the external auditor, and reviewing the effectiveness of internal audit.

Answer: B. Next year's expected dividend divided by (cost of equity minus growth rate)

The Gordon Growth Model (dividend growth model) calculates share price as D1 / (Ke - g), where D1 is the next dividend, Ke is the required return, and g is the constant growth rate.

Answer: C. Limited assurance

Limited (or moderate) assurance results in negative assurance — 'nothing has come to our attention to suggest...' — whereas reasonable assurance results in a positive conclusion.

Take the full ACA ICAEW practice test

Sources & last verified

1. ICAEW — number of questions, time limit, passing score, retake policy (official source). “There are 14 Next Generation ACA exams spread over three levels: the Certificate Level, the Professional Level and the Advanced Level.” Verified Oct 25, 2026 · source checked Oct 24, 2026.
2. ICAEW — exam fee (official source). “Advanced Level (Corporate Reporting and Strategic Business Management) exam £220 Case Study exam £297” Verified Oct 25, 2026 · source checked Oct 24, 2026.
3. ICAEW — next exam date, score release, registration opens, registration deadline (official source). “Monday 14 September, 10:00 (UK-time) Friday 25 September, 17:00 (UK-time) 2, 3, 4 November Thursday 10 December” Verified Oct 31, 2026 · source checked Oct 31, 2026.
4. ICAEW — eligibility (official source). “Your students must develop their professional skills, ethics and professional scepticism and complete 450 days of professional work experience as part of their training.” Verified Oct 25, 2026 · source checked Oct 24, 2026.

How we verify: editorial & fact-checking policy. Report an error: contact us.