ACCA Cheat Sheet 2026

The 30 highest-yield ACCA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. In the context of corporate governance, what is the primary role of a non-executive director (NED)? → To provide independent oversight and challenge executive decisions
2. Which type of budget requires managers to justify every line of expenditure from a zero base each period, regardless of prior-year spending? → Zero-based budget
3. Which procedure provides the MOST reliable evidence about the existence of recorded accounts receivable? → Confirming balances directly with customers
4. According to the Companies Act 2006, which of the following is a general duty owed by a director to the company? → A duty to exercise independent judgment.
5. Which of the following best describes 'inherent risk' in an organizational context? → The raw or untreated risk before any controls
6. When preparing a bank reconciliation, a lodgment recorded in the cash book but not yet shown on the bank statement is called: → An outstanding deposit (timing difference)
7. Which of the following best describes 'span of control' in an organization? → The number of subordinates a manager directly supervises
8. The PESTEL framework adds which two factors to the original PEST analysis? → Environmental and Legal
9. A company has a debt-to-equity ratio of 0.6, an equity beta of 1.4, and a tax rate of 25%. What is the asset (ungeared) beta? → 1.05
10. In a standard costing system, a favorable material usage variance means: → Less material was used than the standard allowed
11. Which costing technique assigns overhead costs to products based on the activities that consume those resources? → Activity-based costing
12. What is the primary purpose of an engagement letter? → To define the terms of the audit engagement and responsibilities of each party
13. Under ISA 240, management override of controls is considered a significant fraud risk in every audit because: → Management is uniquely positioned to override controls regardless of their design
14. Under Mintzberg's managerial roles, which role involves a manager representing the organization at formal events? → Figurehead
15. Schein's model of organizational culture identifies three levels. Which level contains the deepest, most difficult-to-change assumptions? → Basic underlying assumptions
16. A firm's shares trade at $50, expected dividend next year is $2.50, and dividends grow at 4% per year. What is the cost of equity using the Gordon Growth Model? → 9%
17. Under ACCA's Code of Ethics, which principle requires auditors not to disclose client information to third parties without proper authority? → Confidentiality
18. Residual Income (RI) differs from ROI in that RI: → Deducts an imputed interest charge on investment from divisional profit
19. What is insider trading under US securities law? → Trading securities based on material, non-public information in breach of a duty
20. If a company writes off an irrecoverable debt that was previously included in the allowance for receivables, what is the effect on profit? → No effect on profit, as the allowance already absorbed the expense
21. What is the US federal income tax treatment of qualified opportunity zone (QOZ) investments held for at least 10 years? → Appreciation in QOZ investment is excluded from income at sale
22. In a like-kind exchange under IRC Section 1031, which of the following would DISQUALIFY the transaction from nonrecognition treatment? → The taxpayer exchanges US real property for foreign real property
23. Environmental management accounting differs from traditional management accounting primarily because it: → Identifies and allocates environmental costs that are often hidden in overheads
24. Which type of merger requires approval from both companies' boards of directors AND shareholders? → Statutory merger
25. Which standard requires disclosure of related party transactions and relationships in financial statements? → IAS 24
26. Under IAS 40, investment property measured under the fair value model is revalued with gains and losses recognized in: → Profit or loss
27. In a group cash flow statement, how is the acquisition of a subsidiary (net of cash acquired) presented? → As an investing activity
28. Which type of audit opinion is issued when the financial statements are materially misstated but the misstatement is NOT pervasive? → Qualified opinion
29. Under IAS 21, monetary items denominated in a foreign currency are retranslated at year-end using which rate? → Closing rate at the balance sheet date
30. Data is information that has undergone processing to give its recipients meaning. → FALSE