ACCA AS Cheat Sheet 2026

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

1. Which transfer pricing method is most likely to achieve goal congruence? → Market price transfer pricing
2. Which of the following is NOT a financial performance indicator? → Employee turnover rate
3. Which of the following threats to auditor independence is created when the audit firm provides tax advisory services to an audit client? → Self-review threat
4. An increase in the receivables collection period (debtor days) would: → Increase working capital requirements
5. Under ISA 240, which of the following is a characteristic of fraud rather than error? → Intentional manipulation of financial statements by those charged with governance
6. Which of the following is a characteristic of a cost centre? → The manager is responsible for costs only
7. Under ISA 315, which component of internal control encompasses the entity's attitudes, awareness, and actions regarding internal control? → Control environment
8. The primary objective of an external audit is to: → Express an opinion on whether the financial statements give a true and fair view
9. Which of the following is a substantive procedure? → Confirming a sample of receivable balances directly with customers
10. Under ISA 530, which sampling method gives every item in the population an equal chance of selection? → Random selection
11. Net present value (NPV) is calculated as: → The sum of present values of future cash flows minus the initial investment
12. Substantive analytical procedures are MOST effective when: → The auditor expects relationships between data items to be predictable and stable
13. Which of the following is an example of a 'subsequent events' audit procedure? → Reviewing minutes of board meetings held after the reporting date
14. IAS 2 Inventories prohibits which of the following methods of cost valuation? → Last In, First Out (LIFO)
15. Under employment law, an employee is entitled to a written statement of employment particulars within: → On the first day of employment
16. What is the purpose of an engagement letter in an audit? → To document the agreed terms of the engagement between the auditor and the client
17. Which of the following is the formula for the dividend growth model (Gordon Growth Model) for share valuation? → P0 = D1 ÷ (Ke − g)
18. Which of the following is NOT a requirement for a valid simple contract under English law? → A written document signed by both parties
19. Which of the following audit procedures provides the MOST reliable audit evidence? → Direct confirmation from a bank of the client's cash balances
20. A director's duty to exercise reasonable care, skill and diligence under s174 Companies Act 2006 is measured against which standard? → A dual objective/subjective standard — whichever is higher
21. Which of the following is NOT a ground for compulsory winding up of a company by the court? → The company has not traded for six months
22. A company has annual credit sales of £1,200,000 and average trade receivables of £200,000. What is the receivables collection period? → 60.8 days
23. Capital gains tax (CGT) for a higher-rate taxpayer on the disposal of a residential property (above the annual exempt amount) is charged at: → 24%
24. Which of the following would give the auditor the MOST reliable evidence? → A bank confirmation letter received directly from the client's bank
25. Which of the following is classified as an exempt supply for UK VAT purposes? → Insurance services
26. What is the primary purpose of a nomination committee on a listed company board? → Leading the process for board appointments and succession planning
27. Under IAS 38 Intangible Assets, how should research expenditure be treated? → Expensed as incurred
28. Which of the following is an allowable deduction for corporation tax purposes? → Capital allowances on qualifying assets
29. Under the Companies Act 2006, a private company limited by shares is denoted by: → Ltd
30. Transfer pricing is used when: → One division sells goods or services to another division within the same organisation