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ACCA Applied Knowledge Mock Test
A timed 25-question mock for the ACCA Applied Knowledge exams (BT, MA, FA) covering accounting & finance, simple & compound interest, economy & banking awareness. Answer, submit and review every question with its explanation; set negative marking to match your exam’s current scheme.
ACCA Applied Knowledge mock test
25 questions · 1 mark each · the timer starts with your first answer and the test submits itself when time runs out.
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Q1.Accounting & FinanceWhich statement shows a company’s cash inflows and outflows from operating, investing and financing activities?
Answer: C — Cash flow statement
The cash flow statement groups cash flows into three activities.
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Q2.Simple & Compound InterestFind the compound interest on £29,000 at 10% per annum for 2 years, compounded annually.
Answer: B — £6,090
A = P(1 + R/100)^T = 29,000 × 1.10^2 = 35,090; CI = A − P = £6,090.
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Q3.Economy & Banking AwarenessWhich ratio measures a bank’s capital against its risk-weighted assets?
Answer: A — CAR (CRAR)
Capital Adequacy Ratio = capital ÷ risk-weighted assets (Basel norms).
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Q4.Accounting & FinanceWhat is the present value of £17,000 received in 6 years at a 6% discount rate?
Answer: A — £11,984
PV = FV/(1 + r)ⁿ = 17,000 / 1.06^6 = £11,984.
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Q5.Simple & Compound InterestFind the simple interest on £18,000 at 7.5% per annum for 6 years.
Answer: C — £8,100
SI = P × R × T / 100 = 18,000 × 7.5 × 6 / 100 = £8,100.
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Q6.Economy & Banking AwarenessUPI in India stands for:
Answer: C — Unified Payments Interface
UPI, run by NPCI, enables instant bank-to-bank payments.
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Q7.Accounting & FinanceThe CAPM expected return equals:
Answer: B — Rf + β(Rm − Rf)
Capital Asset Pricing Model: risk-free rate + beta × market risk premium.
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Q8.Simple & Compound InterestFind the simple interest on £27,000 at 7.5% per annum for 5 years.
Answer: A — £10,125
SI = P × R × T / 100 = 27,000 × 7.5 × 5 / 100 = £10,125.
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Q9.Economy & Banking AwarenessA bear market is characterised by:
Answer: A — Falling prices
A bear market is a sustained decline in asset prices (often 20% or more).
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Q10.Accounting & FinanceFind the compound interest on £16,000 at 5% per annum for 3 years, compounded annually.
Answer: C — £2,522
A = P(1 + R/100)^T = 16,000 × 1.05^3 = 18,522; CI = A − P = £2,522.
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Q11.Simple & Compound InterestFind the simple interest on £6,000 at 8% per annum for 6 years.
Answer: B — £2,880
SI = P × R × T / 100 = 6,000 × 8 × 6 / 100 = £2,880.
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Q12.Economy & Banking AwarenessWhat does GDP stand for?
Answer: C — Gross Domestic Product
GDP measures the market value of final goods and services produced within a country.
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Q13.Accounting & FinanceWorking capital is:
Answer: C — Current assets − current liabilities
Working capital = current assets − current liabilities.
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Q14.Simple & Compound InterestFind the simple interest on £42,000 at 10% per annum for 5 years.
Answer: D — £21,000
SI = P × R × T / 100 = 42,000 × 10 × 5 / 100 = £21,000.
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Q15.Economy & Banking AwarenessA Non-Performing Asset (NPA) in India is a loan overdue for more than:
Answer: B — 90 days
Under RBI norms a loan becomes an NPA when interest or principal is overdue for more than 90 days.
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Q16.Accounting & FinanceFind the present value of £600 received at the end of each year for 7 years at 5%.
Answer: D — £3,472
PV of an ordinary annuity = PMT × [1 − (1 + r)⁻ⁿ]/r = 600 × 5.7864 = £3,472.
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Q17.Simple & Compound InterestFind the simple interest on £45,000 at 5% per annum for 4 years.
Answer: B — £9,000
SI = P × R × T / 100 = 45,000 × 5 × 4 / 100 = £9,000.
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Q18.Economy & Banking AwarenessFiscal deficit refers to:
Answer: A — Total expenditure minus total receipts excluding borrowings
Fiscal deficit = total expenditure − total receipts (excluding borrowings): the government’s borrowing requirement.
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Q19.Accounting & FinanceStandard deviation in finance measures:
Answer: D — Volatility (dispersion) of returns
It measures how widely returns vary around the mean.
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Q20.Simple & Compound InterestFind the simple interest on £21,000 at 10% per annum for 2 years.
Answer: B — £4,200
SI = P × R × T / 100 = 21,000 × 10 × 2 / 100 = £4,200.
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Q21.Economy & Banking AwarenessWhich instrument is used for transferring money electronically in real time for large values in India?
Answer: A — RTGS
RTGS settles individual large-value transactions in real time.
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Q22.Accounting & FinanceFind the present value of £700 received at the end of each year for 9 years at 6%.
Answer: B — £4,761
PV of an ordinary annuity = PMT × [1 − (1 + r)⁻ⁿ]/r = 700 × 6.8017 = £4,761.
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Q23.Simple & Compound InterestFind the simple interest on £5,000 at 12% per annum for 6 years.
Answer: A — £3,600
SI = P × R × T / 100 = 5,000 × 12 × 6 / 100 = £3,600.
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Q24.Economy & Banking AwarenessA cheque that is presented more than three months after its date is:
Answer: C — Stale
In India a cheque is valid for three months; after that it is stale.
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Q25.Accounting & FinanceWhich ratio measures short-term liquidity?
Answer: B — Current ratio
Current ratio = current assets ÷ current liabilities.
How the mock test works
- The timer starts with your first answer; the test submits itself when time runs out.
- Choose the negative marking that matches your exam (this test has no negative marking by default — check the official notification).
- After submitting you get your score, accuracy, time taken and a topic-wise breakdown, then every explanation.
- “New mock test” builds another paper — calculation questions get new numbers.
About ACCA Applied Knowledge
ACCA Applied Knowledge exams (BT, MA, FA) — conducted by Association of Chartered Certified Accountants (ACCA). The first ACCA level: Business & Technology, Management Accounting and Financial Accounting.
Original practice questions written for this site in the style and difficulty of each exam’s syllabus. They are not past papers and the site is not affiliated with any exam body. Exam patterns, marking schemes and syllabi change — always check the latest official notification.
ACCA Applied Knowledge practice topics
| Topic | Section | Question source |
|---|---|---|
| Accounting & Finance | Finance | Calculated + question bank |
| Simple & Compound Interest | Quantitative aptitude | Calculated (new numbers every set) |
| Economy & Banking Awareness | General awareness | Question bank |