FREE ACCA Applied Skills Questions and Answers

Question 1

In contract law, what is the main requirement for an agreement to be legally enforceable?

Accepted Answer

Offer and acceptance

Answer

Written documentation

Answer

Witness signatures

Answer

Notarization

Question 2

What is the purpose of variance analysis in performance management?

Accepted Answer

To identify deviations from budgeted performance

Answer

To predict future revenues

Answer

To calculate tax liabilities

Answer

To control inventory levels

Question 3

Which of the following taxes is considered indirect?

Accepted Answer

Value-added tax (VAT)

Answer

Corporate income tax

Answer

Personal income tax

Answer

Capital gains tax

Question 4

Which financial statement shows the movement of cash during a specific period?

Accepted Answer

Statement of Cash Flows

Answer

Balance Sheet

Answer

Income Statement

Answer

Statement of Financial Position

Question 5

What is the primary objective of an external audit?

Accepted Answer

To provide an independent opinion on financial statements

Answer

To detect fraud

Answer

To ensure the accuracy of management decisions

Answer

To prepare financial reports