Preview ACCA prep
The global accountancy qualification: Financial Accounting, Management Accounting, Financial Reporting and Audit & Assurance under IFRS, with computed ratio, depreciation and costing questions.
Sample lesson
Accounting Concepts Under IFRS
Going concern, matching, prudence and materiality.
The going concern concept assumes that a business will continue to operate for the foreseeable future. This means that the financial statements are prepared under the assumption that the company will not be liquidated or forced to close down in the near term.
The matching principle requires that expenses be recognized in the same period as the revenues they help to generate. This ensures that financial statements reflect the true profitability of a business during a specific period.
Read-only preview. Quizzes and progress tracking start in the full course.
What a mock looks like
ACCA Financial Accounting (FA) Mock
120 minutes total, with sections timed individually.
- Section A — Objective test questions (70 marks)0 min
- Section B — Multi-task questions (30 marks)0 min
Ravi runs a wholesale business and has been asked by Kelt Co, a new customer, to supply goods on 60-day credit terms. He has obtained Kelt Co's latest published financial statements. Which information in those statements is MOST relevant to Ravi's decision?
- The current and quick ratios and the trade payables payment period
- The trend in earnings per share over the last three years
- The gross profit margin compared with the industry average
- The dividend cover and the dividend paid per share