ACA Cheat Sheet 2026

The 30 highest-yield ACA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Under IFRS 16, the lessor classifies leases as finance or operating based on: → Whether substantially all risks and rewards of ownership are transferred to the lessee
2. Under English law, which of the following is a requirement for a valid deed? → It must be signed, witnessed, and delivered
3. Under IAS 37, the best estimate used to measure a provision is: → The expected value or most likely outcome, considering all possible results
4. Which of the following is NOT a component of audit risk? → Business risk
5. Under IAS 16, subsequent expenditure on a tangible non-current asset is capitalised when: → It is probable that future economic benefits will flow to the entity
6. The internal rate of return (IRR) of a project is the discount rate at which: → Net present value equals zero
7. Which performance measure is used in a profit centre? → Profit (contribution and net profit)
8. Which procedure would provide the most reliable evidence about the existence of trade receivables? → Direct external confirmation from customers
9. The main rate of stamp duty land tax (SDLT) on residential property purchases between £250,001 and £925,000 is: → 5%
10. Under IFRS 8, operating segments are reported based on: → The management approach — how the chief operating decision maker reviews the business
11. The ICAEW Code of Ethics is based on the Code issued by: → The International Ethics Standards Board for Accountants (IESBA)
12. Under IAS 12, a deferred tax liability arises when: → The carrying amount of an asset exceeds its tax base
13. The ICAEW Integrity Statement requires members to behave with integrity in all: → Professional and business relationships
14. The UK 'badges of trade' are used to determine whether: → A transaction is a capital gain or trading income
15. In the context of leasing, the main financial advantage of an operating lease over a finance lease for the lessee is: → Off-balance-sheet financing under historical accounting rules
16. The payback period method's main weakness is that it: → Ignores cash flows occurring after the payback period
17. Under IFRS 11, a joint venture is accounted for using: → The equity method
18. An advocacy threat arises when an accountant: → Promotes a client's position to the point of compromising objectivity
19. Which of the following best describes a 'cost leadership' strategy as defined by Michael Porter? → Becoming the lowest-cost producer in the industry while maintaining acceptable quality
20. Foreign exchange transaction risk arises from: → Changes in exchange rates on specific foreign currency transactions
21. For UK employment income purposes, the employer's Class 1 National Insurance rate above the secondary threshold is: → 15%
22. What is the purpose of an engagement letter in an audit? → To agree the terms of the audit engagement between the auditor and the entity
23. A UK company issues 100,000 ordinary shares with a nominal value of £1 each at a price of £3.50 per share. What is the share premium arising from this issue? → £250,000
24. For UK inheritance tax, the nil-rate band is currently: → £325,000
25. Under FRS 102, what is the correct accounting treatment for development costs that meet the capitalisation criteria? → May be capitalised as an intangible asset and amortised over the development's useful life
26. Which of the following is an example of a non-financial performance indicator? → Customer satisfaction score
27. Which of the following errors would cause the trial balance NOT to balance? → Posting £500 to the correct debit account but £50 to the correct credit account
28. The adverse sales volume variance indicates: → Actual sales were below budgeted sales in volume terms
29. Venture capital typically provides funding to: → Early-stage, high-growth companies in exchange for equity
30. The concept of 'true and fair view' in UK auditing means the financial statements: → Give a fair presentation of the financial position and performance