From the previous syllabus. Nine discrepancies for a company, including a bank error, dishonoured cheques, a standing...
Objective questions Section A
1
Objective question 1Section A
From the previous syllabus. These ask which transactions cause a difference, why a reconciliation is prepared, and which items are or are not reconciling items.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, May 2017, Question 2
4
Objective question 4Section A
From the previous syllabus. These ask how depreciation differs from other expenses, what is not considered in the useful life, and when depreciation starts under IAS 16.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, May 2017, Question 4
6
Objective question 6Section A
From the previous syllabus. Asks which measure of inventory is acceptable, what IAS 2 deals with, why inventory is written down to net realisable value, whether a change from FIFO to weighted average is a change in estimate, and what IAS 2 does not require to be disclosed.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, May 2017, Question 9
12
Objective question 12Section A
From the previous syllabus. Asks where a partner’s accumulated profits are recorded, where a loan advanced by a partner is shown, and the double entry for partners’ drawings.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, May 2017, Question 12
13
Objective question 13Section A
From the previous syllabus. Asks what differs between a sole trader and a company, how equity is described, and which item is not a component of equity.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, May 2017, Question 13
17
Objective question 17Section A
From the previous syllabus. Asks what two partnerships combining is called, how goodwill is found from several years of profit, and when goodwill can be valued in a partnership.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, May 2017, Question 17
19
Objective question 19Section A
Asks which items belong to disposals, the gain or loss on an old car, what is not an IAS 16 disclosure, and the state of the asset account after a disposal.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, May 2017, Question 19
Theory questions Written questions
1
Theory question 1Written paper
6 marks
From the previous syllabus. Asks you to explain the objective of general purpose financial statements and the nature of the information in them. Part (b), on materiality, consistency and offsetting, belongs to the next topic.
From the previous syllabus. Asks you to define materiality (5 marks), consistency (5 marks) and offsetting (4 marks) and explain the significance of each for financial reporting.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, May 2017, Question 1
2
Theory question 2Written paper
12 marks
From the previous syllabus. Asks for the costs of land and building, of plant and machinery and of a motor vehicle at 4 marks each from a list of transactions.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, May 2017, Question 2
3
Theory question 3Written paper
6 marks
From the previous syllabus. A company starts with receivables of ₦1,564,000 and an allowance of ₦78,200. Asks for the entries for bad debts and the allowance. Part (b) prepares a sole trader’s statements.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, May 2017, Question 3
4
Theory question 4Written paper
20 marks
From the previous syllabus. Asks you to define goodwill and explain its recognition (3 marks), state three circumstances in which goodwill is created (3 marks), and, on the retirement of a partner with goodwill not kept, a car taken at a valuation and a loan at 12%, to prepare the capital, cash and loan accounts (6 marks) and the new statement of financial position (8 marks).
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, May 2017, Question 4
5
Theory question 5Written paper
20 marks
From the previous syllabus. Errors found after the profit was calculated. Asks for correcting journals (10 marks), the suspense account (3 marks) and a statement of adjusted profit (7 marks).
From the previous syllabus. Asks for the suspense account showing the amount by which the trial balance did not agree.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, May 2017, Question 5
6
Theory question 6Written paper
10 marks
From the previous syllabus. Nine discrepancies for a company, including a bank error, dishonoured cheques, a standing order, dividends and interest received. Asks for an adjusted cash book (6 marks) and a bank reconciliation statement (4 marks).
From the previous syllabus. Asks you to show the insurance account for the year, and the charge to profit or loss and the disclosure in the statement of financial position, when insurance is paid each 1 April.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
From the previous syllabus. Asks you to explain cost and net realisable value (4 marks) and to describe two methods o...
Objective questions Section A
4
Objective question 4Section A
From the previous syllabus. These ask how depreciation differs from other expenses, what is not considered in the useful life, and when depreciation starts under IAS 16.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, November 2017, Question 7
8
Objective question 8Section A
From the previous syllabus. These ask which transactions cause a difference, why a reconciliation is prepared, and which items are or are not reconciling items.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, November 2017, Question 18
19
Objective question 19Section A
From the previous syllabus. Asks the order of the three activity groups, which item may not be classified as investing, and which information a statement of cash flows cannot reveal.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, November 2017, Question 19
20
Objective question 20Section A
From the previous syllabus. Gives life membership fees received in two years and a policy of crediting them equally over ten years, and asks for the fees recognised in the income and expenditure account for the second year.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, November 2017, Question 1
2
Theory question 2Written paper
From the previous syllabus. A partnership shares profit in a ratio after salaries to each partner. Asks for the statement of profit or loss and appropriation, with a new partner admitted during the year on a pro rata time basis, and the partners’ current accounts.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, November 2017, Question 2
3
Theory question 3Written paper
20 marks
From the previous syllabus. Gives the financial statements of a company for two years and asks for the statement of cash flows by the indirect method.
From the previous syllabus. Each asks for a full statement of cash flows by the indirect method, so you must also find purchases and proceeds of non-current assets, share issues, loan movements and dividends paid for the investing and financing sections.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, November 2017, Question 3
4
Theory question 4Written paper
10 marks
From the previous syllabus. Asks you to define day books and state their purpose (2 marks), then explain the sales day book, the purchases day book, the sales returns day book and the purchases returns day book (2 marks each). Part (c) is a journal question.
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, November 2017, Question 4
5
Theory question 5Written paper
20 marks
From the previous syllabus. Asks for the concept of bank reconciliation (2 marks), four steps (4 marks), four reasons for differences (4 marks), an adjusted cash book (5 marks) and a reconciliation statement (5 marks).
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, November 2017, Question 5
6
Theory question 6Written paper
8 marks
From the previous syllabus. Asks you to explain cost and net realisable value (4 marks) and to describe two methods of arriving at cost under IAS 2 (4 marks).
The full wording of this question has not been added yet. This summary shows what it tests and where to revise it.
Source: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, November 2017, Question 6
Source and reference. These questions come from the Institute of Chartered Accountants of Nigeria (ICAN) Pathfinder for the Foundation Level Examination, Financial Accounting, 2017. When you use them, please cite the source, for example: ICAN Pathfinder, Foundation Level Examination, Financial Accounting, May or November 2017. Each question carries its own reference and a button to copy it.