ACCA · Applied Knowledge
Financial Accounting
Master the fundamentals of financial accounting including double-entry bookkeeping, preparing financial statements, and interpreting financial information. The essential foundation for your ACCA qualification.
2 hours
Exam length
50%
Pass mark
Computer-Based Exam (CBE)
Format
Available on demand at ACCA exam centres
Sittings
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ACCA Financial Accounting
Financial Accounting (FA) is a fundamental paper in the ACCA Applied Knowledge module that introduces students to the principles and practices of financial accounting. It covers the entire financial accounting cycle from recording individual transactions through to preparing complete financial statements.
Students learn the context and purpose of financial reporting, underlying accounting principles and concepts, double-entry bookkeeping, recording transactions for assets, liabilities, income and expenses, reconciliations, trial balance preparation, and the preparation and interpretation of financial statements for single entities and simple groups.
FA is critical to your ACCA journey as it provides the technical accounting foundation that is built upon in Financial Reporting (FR) at the Applied Skills level and Strategic Business Reporting (SBR) at the Strategic Professional level.
FA equips you with the core financial accounting skills required in virtually every accounting role. Whether you work in practice, industry, or the public sector, the ability to prepare and interpret financial statements is fundamental to your career.
Learning outcomes
What you'll be able to do.
01
Explain the context and purpose of financial reporting for external users
02
Apply accounting principles, concepts, and qualitative characteristics
03
Record transactions using double-entry bookkeeping and accounting systems
04
Prepare a trial balance and correct errors
05
Prepare financial statements for single entities and simple groups
06
Interpret financial statements using ratio analysis
FA Exam Syllabus
The FA syllabus covers the key topics you'll be examined on.
The Context and Purpose of Financial Reporting
The Context and Purpose of Financial Reporting
- The scope and purpose of financial statements for external reporting
- Stakeholders' needs
- The main elements of financial reports
- The regulatory framework
- Duties and responsibilities of those charged with governance
Accounting Principles, Concepts and Qualitative Characteristics
Accounting Principles, Concepts and Qualitative Characteristics
- The qualitative characteristics of financial information
- Qualitative characteristics of useful financial information
The Use of Double-Entry Bookkeeping and Accounting Systems
The Use of Double-Entry Bookkeeping and Accounting Systems
- Double-entry bookkeeping principles including the maintenance of accounting records
- General ledger accounts and journal entries
Recording Transactions and Events
Recording Transactions and Events
- Sales and purchases
- Cash
- Inventories
- Tangible non-current assets
- Depreciation
- Intangible non-current assets and amortisation
- Accrued expenses, prepaid expenses, accrued income, and deferred income
- Receivables and payables
- Provisions and contingencies
- Capital structure and finance costs
Reconciliations
Reconciliations
- Bank reconciliations
- Payables account reconciliations
Preparing a Trial Balance
Preparing a Trial Balance
- Trial balance
- Correction of errors
- Suspense accounts
Preparing Financial Statements
Preparing Financial Statements
- Statement of financial position
- Statement of profit or loss and other comprehensive income
- Disclosure notes
- Events after the reporting period
- Statement of cash flows (excluding partnerships)
- Incomplete records
Preparing Basic Consolidated Financial Statements
Preparing Basic Consolidated Financial Statements
- Subsidiaries
- Associates
Interpretation of Financial Statements
Interpretation of Financial Statements
- Importance and purpose of analysis of financial statements
- Ratios
- Analysis of financial statements
Subscription includes
What's included with your subscription.
Everything you get when you subscribe — across every ACCA paper, not just Financial Accounting.
Guided study plans
Week-by-week plans aligned to your sitting date — so you always know what to study next.
Video lectures
Full syllabus coverage from expert tutors, broken into focused 10-15 minute lessons.
CBE practice questions & mocks
Realistic computer-based exam questions and full mocks, marked with examiner-style feedback.
1-2-1 sessions
Book one-to-one time with a tutor for tricky topics, results reviews, or exam strategy.
Revision Bootcamp
Pre-sitting intensives to sharpen question technique and pin down high-mark topics.
Weekly student-support webinars
Drop-in calls where tutors walk through tough topics and answer questions live.
ACCA FA Exam Structure
Everything you need to know about the FA exam format, timing, and what to expect on exam day.
Duration
2 hours
Format
Computer-Based Exam (CBE)
Structure
FA is a 2-hour computer-based exam (CBE) with two sections. Section A: 35 objective test questions worth 2 marks each (70 marks). Section B: 2 multi-task questions (MTQs) worth 15 marks each (30 marks). All questions are compulsory. Total 100 marks; on-demand at ACCA exam centres; 50% pass mark.
Sittings
Available on demand at ACCA exam centres
Pass mark
50%
Your Guide To Pass ACCA FA
Expert tips from our tutors to help you prepare effectively and pass your FA exam on the first attempt.
Master Double-Entry
Double-entry bookkeeping is the foundation of FA. Ensure you can confidently record debits and credits for all transaction types before attempting financial statement preparation.
Practice Financial Statements
Regularly practice preparing statements of financial position, profit or loss, and cash flows. These are heavily tested topics that require repeated practice.
Learn the Adjustments
Accruals, prepayments, depreciation, and provisions feature prominently in FA. Understand the journal entries and their impact on financial statements.
Understand Consolidation Basics
Basic group accounting (subsidiaries and associates) is tested in FA. Learn the key consolidation adjustments including goodwill and non-controlling interests.
Practice Reconciliations
Bank reconciliations and control account reconciliations are commonly tested. Practice these until you can complete them quickly and accurately.
Study with Learnsignal
Learnsignal provides structured FA courses with step-by-step worked examples, practice questions, and expert tutor support to build your technical skills.
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See ACCA pricing →Frequently Asked Questions About FA
Everything you need to know about the Financial Accounting exam and how to prepare for it.
What is ACCA Financial Accounting (FA)?+
Financial Accounting (FA) is one of three papers at the ACCA Applied Knowledge level. It covers the fundamentals of financial accounting from double-entry bookkeeping through to preparing and interpreting financial statements for single entities and simple groups.
Are there any prerequisites for FA?+
No. FA is an entry-level paper with no prerequisites. You can study it alongside BT (Business and Technology) and MA (Management Accounting) at the Applied Knowledge level.
How long is the FA exam?+
The FA exam is 2 hours long. It is a computer-based exam (CBE) consisting of objective test questions including multiple choice, multiple response, and fill-in-the-blank questions.
When can I sit the FA exam?+
FA is available on demand at ACCA exam centres worldwide. You can book and sit the exam at any time without waiting for specific exam sessions.
What topics does FA cover?+
FA covers nine main areas: the purpose of financial reporting, accounting principles, double-entry bookkeeping, recording transactions, reconciliations, trial balance preparation, financial statements preparation, basic consolidation, and interpretation of financial statements.
How does FA relate to other ACCA papers?+
FA provides the technical accounting foundation for Financial Reporting (FR) at the Applied Skills level and Strategic Business Reporting (SBR) at the Strategic Professional level. The bookkeeping and financial statements skills from FA are essential for these advanced papers.
What is the pass mark for FA?+
The pass mark for FA is 50%. The exam is marked out of 100, and you need to achieve at least 50 marks to pass.
Is FA harder than BT?+
FA is more technical than BT as it focuses on numerical accounting techniques and financial statement preparation. However, with consistent practice and a good understanding of double-entry principles, most students find it manageable.
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