Free ACCA Mock Test 192 — 20 Questions + Full Answers
Association of Chartered Certified Accountants · Accountancy students · Exams: Mar, Jun, Sep, Dec
Sections: Financial Accounting · Applaa proprietary paper — free to download and print
No sign-up required · 100% free · Applaa proprietary content
Applaa ACCA Mock Test 192
applaa-acca-mock-192.pdf · 20 questions
Applaa proprietary content · Free to download and print · No sign-up required
Save PDFSample Questions — ACCA Mock 192
8 of 20 shownCorrect answers highlighted in green. Full explanations included.
Falcon Engineering Ltd disposed of a delivery vehicle for £20,160. The vehicle had originally cost £33,600 and had accumulated depreciation of £16,800 at the date of disposal. What is the gain or loss on disposal to be recorded in profit or loss?
- A.Gain on disposal of £3,360
- B.Loss on disposal of £3,360
- C.Gain on disposal of £-13,440
- D.Loss on disposal of £16,800
✓ Worked Explanation
Core Concept: Profit or Loss on Disposal of a Non-Current Asset When a non-current asset is sold, the gain or loss is measured as Disposal Proceeds minus the Carrying Value (Net Book Value). It is *not* compared to the original cost. Only the written-down value at the disposal date is relevant. Step-by-Step Resolution: 1. Find the Carrying Value (NBV) at disposal date: NBV = Original Cost Accumulated Depreciation = £33,600 £16,800 = £16,800 2. Compare to Disposal Proceeds: £20,160 (recei
Before correcting the year-end errors, the draft profit of Nova Tech Solutions Ltd was £120,000. An error was discovered: Closing inventory was overstated by £18,000. What is the revised profit after correcting this error?
- A.£138,000
- B.£102,000
- C.£120,000 (no effect on profit)
- D.£84,000
✓ Worked Explanation
Core Concept: Impact of Inventory Errors on Profit The relationship between inventory and profit is one of the most important concepts in financial accounting. Closing inventory is deducted from Cost of Sales. If closing inventory is overstated, Cost of Sales is *understated*, which means Gross Profit is *overstated*. Correcting the overstatement increases COGS and reduces profit. Step-by-Step Resolution: 1. Recall the COGS Formula: Cost of Sales = Opening Inventory + Purchases Closing Invent
A bookkeeper at Pinnacle Consulting Ltd prepared a trial balance which failed to agree, with the credit side exceeding the debit side by £1,500. A suspense account was opened. Which of the following errors, when corrected, could explain this difference?
- A.A purchase invoice for £750 was completely omitted from the books.
- B.A cash payment of £750 to a supplier was debited to the purchases account but not credited to the cash account.
- C.Sales of £750 were recorded by debiting Receivables Control and debiting Sales Account.
- D.A purchase return of £750 was debited to the Purchase Returns account and credited to Receivables Control.
✓ Worked Explanation
Core Concept: Trial Balance Errors and the Suspense Account A trial balance fails to agree when a transaction is posted with unequal debits and credits. The difference is placed in a suspense account until the error is found and corrected. Errors that cause the trial balance to fail include: single-sided entries, casting errors, and transposition errors on one side only. Step-by-Step Resolution: 1. Analyse the Symptom: Credits exceed debits by £1,500. This means the debit side is £1,500 *too sm
The trial balance of Crown Paper Ltd balanced perfectly. However, it was later discovered that a purchase of equipment costing £22,000 was entered into the repairs and maintenance account. What type of error has occurred?
- A.Error of Omission
- B.Error of Commission
- C.Error of Principle
- D.Error of Reversal
✓ Worked Explanation
Core Concept: The Six Types of Accounting Errors There are six classic types of bookkeeping errors. Some cause the trial balance to disagree; others do not. This question tests recognition of errors that *hide* behind a balanced trial balance - meaning both sides are still equal, but the accounting treatment is fundamentally wrong. Step-by-Step Resolution: 1. Analyse the Error: Equipment (a non-current asset / capital expenditure) was posted to Repairs & Maintenance (a revenue expense accou
Meridian Distributors Ltd disposed of a delivery vehicle for £3,840. The vehicle had originally cost £6,400 and had accumulated depreciation of £3,200 at the date of disposal. What is the gain or loss on disposal to be recorded in profit or loss?
- A.Gain on disposal of £640
- B.Loss on disposal of £640
- C.Gain on disposal of £-2,560
- D.Loss on disposal of £3,200
✓ Worked Explanation
Core Concept: Profit or Loss on Disposal of a Non-Current Asset When a non-current asset is sold, the gain or loss is measured as Disposal Proceeds minus the Carrying Value (Net Book Value). It is *not* compared to the original cost. Only the written-down value at the disposal date is relevant. Step-by-Step Resolution: 1. Find the Carrying Value (NBV) at disposal date: NBV = Original Cost Accumulated Depreciation = £6,400 £3,200 = £3,200 2. Compare to Disposal Proceeds: £3,840 (received)
Before correcting the year-end errors, the draft profit of Beacon Logistics LLP was £120,000. An error was discovered: Closing inventory was overstated by £9,600. What is the revised profit after correcting this error?
- A.£129,600
- B.£110,400
- C.£120,000 (no effect on profit)
- D.£100,800
✓ Worked Explanation
Core Concept: Impact of Inventory Errors on Profit The relationship between inventory and profit is one of the most important concepts in financial accounting. Closing inventory is deducted from Cost of Sales. If closing inventory is overstated, Cost of Sales is *understated*, which means Gross Profit is *overstated*. Correcting the overstatement increases COGS and reduces profit. Step-by-Step Resolution: 1. Recall the COGS Formula: Cost of Sales = Opening Inventory + Purchases Closing Invent
Nexus Media plc completed two projects during the year: 1) Purchased and installed a new warehouse conveyor belt system for £60,000, and 2) Had the exterior of the existing office block repainted for £6,000. How should these expenditures be classified?
- A.Both projects are Capital Expenditure.
- B.Warehouse system: Capital Expenditure (£60,000), Repainting: Revenue Expenditure (£6,000)
- C.Warehouse system: Revenue Expenditure (£60,000), Repainting: Capital Expenditure (£6,000)
- D.Both projects are Revenue Expenditure.
✓ Worked Explanation
Core Concept: Capital Expenditure vs. Revenue Expenditure Capital Expenditure (CapEx) creates or enhances a long-term non-current asset and is capitalised on the balance sheet, then depreciated over its useful life. Revenue Expenditure (RevEx) relates to day-to-day operations, maintenance, or restoration and is expensed immediately in profit or loss. Step-by-Step Resolution: 1. Warehouse Conveyor Belt System (£60,000): - This is a *new* asset installed to generate future economic benefits. I
For the year ended 31 December, Aura Goods Ltd paid rent of £66,000. At the year-end, the company had an outstanding electricity invoice of £5,500 which has not yet been paid. What are the adjusting entries required at the year-end to record this accrual?
- A.Debit Accruals £5,500, Credit Electricity Expense £5,500
- B.Debit Electricity Expense £5,500, Credit Accruals (Liabilities) £5,500
- C.Debit Cash £5,500, Credit Electricity Expense £5,500
- D.Debit Electricity Expense £5,500, Credit Prepayments (Assets) £5,500
✓ Worked Explanation
Core Concept: Accruals (Expenses Incurred but Not Yet Paid) Under the accruals concept (IAS 1), expenses must be recognised in the period they are *incurred*, not when they are *paid*. An accrual is a current liability - the business owes this amount but hasn't yet paid the invoice. Step-by-Step Resolution: 1. Identify the Issue: The electricity expense of £5,500 was incurred during the accounting year but remains unpaid at year-end. 2. Apply the Accruals Concept: The expense belongs to this ye
Download the PDF for all 20 questions + full mark scheme
Download PDFFrequently Asked Questions
Is this ACCA mock test free?+
Yes. All 250 Applaa ACCA mock tests are completely free — no sign-up, no payment required. Download PDF or view in browser.
Which ACCA papers do these mocks cover?+
Applaa ACCA mock tests cover F1 (Accounts Preparation) and F2 (Management Accounting) — the Applied Knowledge level papers, formerly known as BT and MA.
Do the ACCA mock papers include worked explanations?+
Yes. Every ACCA practice question on this page includes the correct answer and a worked explanation explaining why each option is right or wrong.
How many questions are in each ACCA mock test?+
Each Applaa ACCA mock test contains 20 multiple-choice questions across the F1 and F2 syllabus areas, with full worked explanations.
Download This Mock
Free PDF — 20 questions with worked answers. Print it or attempt offline.
Download PDF FreeNo sign-up · No paywall · Applaa proprietary
Paper Info
- Exam
- ACCA
- Mock number
- 192 of 250
- Questions
- 20
- Format
- Multiple Choice (MCQ)
- Sections
- 1
- Audience
- Accountancy students
- Timing
- Exams: Mar, Jun, Sep, Dec
- Copyright
- Applaa Proprietary
Sections Covered
- Financial Accounting
AI step-by-step guidance
Appy Buddy in the Applaa desktop app guides you through every question with Socratic AI tutoring — explains why each answer is right or wrong.
Download Applaa Free