ACCA FA exam technique

How the FA exam is built

Financial Accounting is a two-hour, on-demand computer-based exam worth 100 marks, with a pass mark of 50%. Section A has 35 two-mark objective-test questions (70 marks). Section B has two 15-mark multi-task questions (MTQs), 30 marks in total. The syllabus and study guide says Section B tests consolidations and accounts preparation; the consolidation question could include a small amount of interpretation, and the accounts preparation question could be set for a sole trader or a limited company.

The biggest single block is a 15-mark MTQ, worth about 18 minutes at 1.2 minutes a mark. Section A is worth about 84 minutes in total, roughly two and a half minutes a question. Protect the last 36 minutes for Section B: those two questions carry nearly a third of the marks.

Where FA candidates lose marks

The examiner's report says there were "no significant issues noted with examination technique" in Section A, but its examples show exactly where the marks go.

• Assuming a mix of answers. In an IAS 10 true/false question, all four statements were true. "Many candidates incorrectly selected some of the false options, having assumed there should be a mix of true and false statements."
• Getting the direction wrong. Both bank examples turn on direction: a rejected customer cheque recorded on the wrong side, rental income credited instead of debited, and the need to separate items that correct the ledger (bank charges, a cancelled cheque) from items that belong only in the reconciliation (a bank error, an unpresented cheque).
• Statement detail in Section B. The report reminds candidates that a statement of financial position is prepared "as at" a date, not "for the year ended", and that opening accumulated depreciation is not the year-end figure. In cash flow questions you may have to choose whether to "add" or "subtract" each amount.
• Consolidation slips. The report's checklist includes: add parent and subsidiary line by line in full (no proportional consolidation); exclude the subsidiary's share capital and pre-acquisition retained earnings; time-apportion the subsidiary's results if control was acquired partway through the year; eliminate intragroup sales and unrealised profit in inventory.
• Selective revision. The conclusion is firm that the exam covers the full breadth of the syllabus, and that candidates should attempt all questions.

The FA technique that works

1. Do the double entry before you choose. Sketch both sides of each adjustment in your workings, then select. For a question like "Which TWO adjustments are required", complete both adjustments and select exactly two. There is no penalty for a wrong answer, so leave nothing blank.
2. Judge each statement alone. In true/false and matching items, decide every line against the standard. Do not adjust an answer because the pattern looks unbalanced.
3. Read dates and direction as part of the requirement. Check whether a figure is opening or closing, whether a statement is "as at" or "for the year ended", and whether an amount increases or reduces the balance. Then check the number-entry unit before you type.
4. Learn the Section B screens. You will not type text, but you may choose headings, place ledger amounts, pick "Yes" or "No" from drop-downs, or choose a formula from a list. The examiner strongly recommends the specimen exam, additional MTQs and practice tests on the ACCA website, so the formats cost you no thinking time on the day.
5. Run a consolidation checklist. Before you finalise group figures, run through the report's list: line-by-line addition, goodwill in place of the investment, parent's share capital only, post-acquisition profits only, time-apportionment, intragroup elimination.
6. Allocate time deliberately. The examiner asks candidates to "allocate an appropriate amount of time to each question and manage their time effectively across all sections". As general exam craft, flag any Section A item that runs past three minutes and move on.

Check your FA technique

The interactive check below takes the habits in this guide and asks you to apply them to FA-style decisions: how many responses to select, which dates and directions to verify, when to leave Section A for Section B. It scores each habit separately, and saves your latest result on this device and to your account when you are signed in. A useful first run reflects what you really do in mocks. Work through the debrief, then retake to see whether the weakest habit has moved.

Before the exam

In the last week, sit the specimen exam or a practice test under timed conditions using ACCA's on-demand resources and redo any consolidation or cash flow MTQ you found slow. On the day, check your booking confirmation and your exam provider's instructions, note your start time, and set yourself a point on the clock by which you will open Section B.