ACCA AK Cheat Sheet 2026

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

1. A self-interest threat to an accountant's objectivity arises when: → The accountant has a financial interest in the outcome of an engagement
2. Which of the following describes a 'public sector' organisation? → An organisation owned and funded by the government
3. When a business receives cash from a customer in advance of providing a service, it records: → A debit to cash and a credit to deferred revenue (liability)
4. The fixed overhead capacity variance measures: → The difference between actual hours worked and budgeted hours, valued at the standard rate
5. Which accounting concept states that similar items should be treated consistently from one period to the next? → Consistency concept
6. Which of the following correctly states the effect of paying a trade payable by bank transfer? → Decrease assets, decrease liabilities
7. Which of the following correctly describes the accounting equation? → Assets = Equity + Liabilities
8. An error of principle occurs when: → A transaction is recorded in an account of the wrong class or type
9. Which financial statement shows the financial position of a business at a specific point in time? → Statement of financial position
10. Under the UK Bribery Act 2010, which of the following would constitute an offence? → Making a payment to a foreign official to secure a government contract
11. Which of the following is most likely to improve employee motivation according to Herzberg? → Giving employees greater responsibility and autonomy
12. Which of the following is included in the cost of conversion under IAS 2? → Direct labour and production overheads
13. The primary objective of a private sector company is generally considered to be: → Maximising shareholder wealth
14. Which of the following items would appear in Other Comprehensive Income (OCI) rather than profit or loss? → A revaluation surplus on property under the revaluation model of IAS 16
15. According to Mendelow's matrix, stakeholders with HIGH power and HIGH interest should be: → Managed closely
16. Which of the following errors would be revealed by a trial balance? → A single-sided entry where only the debit has been recorded
17. An accountant discovers that their employer is involved in money laundering. Under UK law, what should the accountant do? → Report the matter to the appropriate authority, such as the National Crime Agency (NCA)
18. Which variance measures the difference between standard labour cost for actual output and the actual labour cost? → Total labour variance
19. Which stakeholder group would typically be most concerned with an organisation's ability to repay its debts? → Lenders/creditors
20. Which of the following is a current liability? → Trade payables due within 30 days
21. Which of the following describes 'absorption costing'? → Both fixed and variable production costs are included in unit cost
22. The closing inventory of a business is overstated by £4,000. What effect does this have on the financial statements? → Profit is overstated by £4,000 and assets are overstated by £4,000
23. Which of the following is a direct cost? → Raw materials used in a product
24. Under IFRS, which of the following is a component of 'other comprehensive income'? → Revaluation surplus on property, plant and equipment
25. The direct labour rate variance is calculated as: → (Standard rate – Actual rate) × Actual hours worked
26. An error of commission occurs when: → A transaction is posted to the correct type of account but the wrong account
27. Activity-based budgeting (ABB) focuses on: → Budgeting the costs of activities and the cost drivers that cause those costs
28. Which of the following best describes 'whistle-blowing'? → Reporting suspected wrongdoing within an organisation to an appropriate authority
29. Which of the following is an example of a 'tall' vs 'flat' structural trade-off? → Flat structures have wider spans of control but fewer promotion opportunities
30. The difference between budgeted profit and actual profit explained by volume sold is the: → Volume variance