ACCA Study Guide 2026
Everything you need to pass the ACCA exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 ACCA Exam Format at a Glance
📚 ACCA Topics to Study (21)
✍️ Sample ACCA Questions & Answers
1. In a leveraged buyout (LBO), the acquisition of the target company is primarily funded by:
LBOs use substantial debt — often 60–90% of the purchase price — secured on the target's assets, with debt repaid from the target's operating cash flows post-acquisition.
2. When a company's treasury function operates as a 'profit center,' this means that:
A profit center treasury actively trades and takes market views to generate profits, accepting higher risk compared to a cost center treasury that simply hedges group exposures.
3. Which of the following is an example of a detective control?
Bank reconciliations are detective controls because they identify errors or discrepancies after a transaction has already occurred.
4. How are translation differences on foreign subsidiaries treated under IAS 21?
IAS 21 requires exchange differences arising on translation of foreign subsidiaries to be accumulated in a separate component of equity (OCI) until disposal.
5. According to Porter's Diamond model, which of the following determinants explains the role of home-market size and sophistication in driving competitive advantage for a nation's firms?
Porter's Diamond model identifies four determinants of national competitive advantage. 'Demand Conditions' refers to the nature of home-market demand for the industry's product or service. A sophisticated and demanding home market pressures local firms to improve quality and innovate. 'Factor Conditions' relate to production inputs. 'Firm Strategy, Structure, and Rivalry' concerns the conditions governing how companies are managed. 'Related and Supporting Industries' refers to the presence of competitive supplier industries.
6. When valuing a target company using the P/E ratio method, the most appropriate P/E ratio to apply to the target's earnings is typically:
The acquirer's or industry P/E ratio reflects the earnings quality and growth prospects expected after the acquisition, making it more relevant than the target's standalone ratio.