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100+ Free BICA Qualification Practice Questions

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Sample BICA Qualification Practice Questions

Try these sample questions to test your BICA Qualification exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under IAS 1 Presentation of Financial Statements, what is the primary criterion for determining whether an entity should prepare its financial statements on a going concern basis?
A.Management has assessed that the entity has neither the intention nor the need to liquidate or cease trading for at least 12 months from the reporting date
B.The entity has generated positive operating cash flows and net accounting profit in the preceding three consecutive financial years
C.An independent external auditor has issued an unqualified audit report confirming financial solvency for the upcoming financial period
D.Total assets exceed total liabilities by at least 25% on the statement of financial position at the reporting date
Explanation: IAS 1 requires management to make an assessment of an entity's ability to continue as a going concern for a period of at least 12 months from the end of the reporting period. Financial statements must be prepared on a going concern basis unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so.
2A business holds 1,000 units of product Alpha in inventory at year-end. Each unit cost P120 to manufacture. Due to market changes, the expected selling price is P140 per unit, but the company must incur P30 per unit in repackaging costs and a 5% sales commission on the selling price to sell them. Under IAS 2 Inventories, at what total value should product Alpha be reported in the statement of financial position?
A.P103,000
B.P120,000
C.P140,000
D.P110,000
Explanation: Under IAS 2, inventory must be measured at the lower of cost and net realizable value (NRV). Cost = 1,000 units * P120 = P120,000. NRV per unit = Estimated selling price (P140) - Repackaging cost (P30) - Sales commission (5% * P140 = P7) = P103 per unit. Total NRV = 1,000 * P103 = P103,000. Because NRV (P103,000) is lower than cost (P120,000), inventory is valued at P103,000, and a P17,000 write-down is recognized in profit or loss.
3Gaborone Enterprises acquired a heavy industrial machine on 1 January 2024 for P2,400,000. The machine consists of a main structural body (cost P1,800,000; useful life 15 years; nil residual value) and a specialized turbine unit (cost P600,000; useful life 5 years; nil residual value). Straight-line depreciation is applied. On 31 December 2025, before any revaluation, what is the total carrying amount of the machine under IAS 16 Property, Plant and Equipment?
A.P1,920,000
B.P2,080,000
C.P1,800,000
D.P2,160,000
Explanation: IAS 16 requires component depreciation where parts of an item of PPE have different useful lives. Annual depreciation: structural body = P1,800,000 / 15 = P120,000/year; turbine unit = P600,000 / 5 = P120,000/year. Total annual depreciation = P240,000. Over 2 years (2024 and 2025), accumulated depreciation is 2 * P240,000 = P480,000. Carrying amount at 31 December 2025 = P2,400,000 - P480,000 = P1,920,000.
4Under IAS 23 Borrowing Costs, which of the following conditions mandates the capitalization of borrowing costs as part of the cost of an asset?
A.The borrowing costs are directly attributable to the acquisition, construction, or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale
B.Management elects to capitalize borrowing costs as an accounting policy choice applied consistently across all tangible and intangible assets
C.The funds are borrowed under a general overdraft facility with variable interest rates regardless of asset construction duration
D.The asset being constructed is financed exclusively through internal retained earnings without external debt
Explanation: IAS 23 states that borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset form part of the cost of that asset. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale. Capitalization is mandatory, not an optional accounting policy choice.
5Under IAS 20 Accounting for Government Grants and Disclosure of Government Assistance, how should a grant related to depreciable assets be recognized in the financial statements?
A.Either as deferred income amortized to profit or loss over the useful life of the asset, or by deducting the grant from the carrying amount of the asset
B.Directly in retained earnings as an equity contribution in the period the cash grant is received
C.Immediately in profit or loss as other operating income in full upon receipt of the grant funds
D.In other comprehensive income as a permanent revaluation reserve that is never reclassified to profit or loss
Explanation: IAS 20 permits two presentation methods for government grants related to assets: (1) presenting the grant as deferred income, which is recognized in profit or loss on a systematic basis over the useful life of the asset; or (2) deducting the grant in arriving at the carrying amount of the asset, which reduces future depreciation charges.
6A cash-generating unit (CGU) has a carrying amount of P5,000,000, which includes goodwill of P800,000 and property, plant, and equipment (PPE) of P4,200,000. At the reporting date, the recoverable amount of the CGU is determined to be P3,800,000. Under IAS 36 Impairment of Assets, how should the total impairment loss of P1,200,000 be allocated?
A.P800,000 to goodwill entirely reducing it to nil, and the remaining P400,000 to PPE pro-rata
B.P1,200,000 allocated pro-rata between goodwill (P192,000) and PPE (P1,008,000) based on relative carrying amounts
C.P1,200,000 allocated entirely against PPE while preserving goodwill untouched
D.P600,000 to goodwill and P600,000 to PPE equally
Explanation: Under IAS 36, an impairment loss for a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU to nil. Any remaining impairment loss is then allocated pro-rata to the other assets of the CGU based on their relative carrying amounts. Here, P800,000 is allocated to goodwill (reducing it to P0) and the remaining P400,000 reduces PPE to P3,800,000.
7A company is facing a legal lawsuit from a former supplier claiming damages of P1,500,000. Legal counsel advises that there is a 70% probability that the company will be found liable, with a most likely settlement cost of P1,000,000. Under IAS 37 Provisions, Contingent Liabilities and Contingent Assets, how should this matter be treated?
A.Recognize a provision of P1,000,000 in the statement of financial position and disclose the nature and uncertainties in the notes
B.Disclose a contingent liability in the notes without recognizing any provision because the exact amount is uncertain
C.Recognize a provision of P1,500,000 for the maximum potential claim amount
D.Recognize an expected value provision of P700,000 (70% * P1,000,000)
Explanation: Under IAS 37, a provision is recognized when: (1) there is a present legal or constructive obligation as a result of a past event; (2) an outflow of economic resources is probable (>50% probability); and (3) a reliable estimate can be made. Because liability is probable (70%) and the single most likely outcome is P1,000,000, a provision of P1,000,000 is recognized with accompanying note disclosures.
8Under IAS 38 Intangible Assets, which of the following expenditures must be recognized as an expense in profit or loss when incurred?
A.Costs incurred during the research phase of an internal project to discover new scientific knowledge
B.Development costs incurred after demonstrating technical feasibility, commercial viability, and availability of adequate resources
C.Directly attributable legal fees incurred to register a patented manufacturing process
D.Purchase price paid to acquire a specialized commercial software license from a third party
Explanation: IAS 38 strictly prohibits the capitalization of research expenditures (or expenditures during the research phase of an internal project). All research costs must be recognized as an expense in profit or loss when incurred. In contrast, development costs must be capitalized once all six recognition criteria (technical feasibility, intention, ability to use/sell, future economic benefits, available resources, and reliable measurement) are met.
9Francistown Properties holds a commercial office building rented out to third-party tenants under operating leases. The company adopts the fair value model under IAS 40 Investment Property. The building had a fair value of P8,500,000 on 1 January 2025. On 31 December 2025, an independent professional valuer determined its fair value to be P9,200,000. How should the P700,000 increase be accounted for?
A.Recognized as a gain in profit or loss for the year with no depreciation charged on the building
B.Recognized in other comprehensive income and credited to a revaluation surplus in equity
C.Deducted against accumulated depreciation with any excess credited to retained earnings
D.Deferred on the statement of financial position and amortized to profit or loss over the remaining lease term
Explanation: Under IAS 40's fair value model, investment property is remeasured to fair value at each reporting date. Any gain or loss arising from a change in the fair value of investment property must be recognized in profit or loss in the period in which it arises. No depreciation is charged on investment property measured under the fair value model.
10Under IFRS 15 Revenue from Contracts with Customers, when is a performance obligation satisfied over time rather than at a point in time?
A.The customer simultaneously receives and consumes the benefits provided by the entity's performance as the entity performs
B.The entity has a present right to payment and physical possession of the asset has transferred to the customer
C.The customer has accepted legal title and significant risks and rewards of ownership at shipment
D.The contract price is fixed and payment is received in full prior to delivery
Explanation: IFRS 15 paragraph 35 establishes that an entity transfers control of a good or service over time (and thus satisfies a performance obligation over time) if one of three criteria is met: (1) the customer simultaneously receives and consumes the benefits; (2) the entity's performance creates or enhances an asset controlled by the customer; or (3) the performance does not create an asset with an alternative use and the entity has an enforceable right to payment for performance completed to date.

About the BICA Qualification Exam

The BICA Qualification is Botswana's national chartered accountancy credential, established under the Accountants Act, 2010 and developed through a twinning arrangement with the Institute of Chartered Accountants in England and Wales (ICAEW). It leads to the BICA Chartered Accountant (CA) designation. Candidates complete four elements: 15 modular exams, 450 days of practical work experience, professional development, and the Ethics and Professional Scepticism programme. Exams are set in English and cover financial accounting, management information, Botswana taxation, auditing, business law, strategy and professional ethics.

Assessment

15 modules across 3 levels. Certificate Level (6 modules: Accounting / Assurance / 'Business, Technology and Finance' / Law / Management Information / Principles of Taxation); Professional Level (6 modules: Audit and Assurance / Business Strategy and Technology / Financial Accounting and Reporting / Financial Management / Business Planning: Taxation / Tax Compliance); Advanced Level (3 modules: Corporate Reporting / Strategic Business Management / Case Study, which must be attempted last). Law, Principles of Taxation, Tax Compliance and Business Planning: Taxation are Botswana local variants examined on Botswana legislation.

Time Limit

1.5 hours per Certificate module; 2.5 hours per Professional module (3 hours for Financial Accounting and Reporting); 3.5 hours for Corporate Reporting and Strategic Business Management; 4 hours for the Case Study

Passing Score

55% (Certificate and Professional Level), 50% (Advanced Level and Case Study)

Exam Fee

Per module: GBP 75 + P50 admin (Certificate), GBP 105 + P50 (Professional), GBP 180 + P100 (Advanced), GBP 270 + P100 (Case Study). Student registration P800 and annual subscription P800. (Botswana Institute of Chartered Accountants (BICA))

BICA Qualification Exam Content Outline

22%

Financial Accounting & Corporate Reporting

IFRS standards, group consolidations, financial instruments, revenue recognition, leases, and conceptual framework.

18%

Management Information & Financial Management

Cost accounting, CVP analysis, budgeting, variance analysis, working capital, NPV/IRR, WACC, and business valuation.

18%

Botswana Taxation & Tax Compliance

BURS administration, Income Tax Act, individual PAYE, corporate tax, capital allowances, VAT Act, and withholding taxes.

16%

Audit, Assurance & Internal Control

International Standards on Auditing (ISAs), risk assessment, internal controls, audit evidence, sampling, and audit reports.

13%

Botswana Commercial Law & Corporate Governance

Companies Act (Cap. 42:01), solvency test, directors duties, contract law, agency, employment law, and King IV governance.

13%

Business Strategy, Technology & Professional Ethics

Strategic analysis models, IT controls, ERP systems, BICA Code of Ethics (IESBA), Accountants Act 2010, and AML/CFT compliance.

How to Pass the BICA Qualification Exam

What You Need to Know

  • Passing score: 55% (Certificate and Professional Level), 50% (Advanced Level and Case Study)
  • Assessment: 15 modules across 3 levels. Certificate Level (6 modules: Accounting / Assurance / 'Business, Technology and Finance' / Law / Management Information / Principles of Taxation); Professional Level (6 modules: Audit and Assurance / Business Strategy and Technology / Financial Accounting and Reporting / Financial Management / Business Planning: Taxation / Tax Compliance); Advanced Level (3 modules: Corporate Reporting / Strategic Business Management / Case Study, which must be attempted last). Law, Principles of Taxation, Tax Compliance and Business Planning: Taxation are Botswana local variants examined on Botswana legislation.
  • Time limit: 1.5 hours per Certificate module; 2.5 hours per Professional module (3 hours for Financial Accounting and Reporting); 3.5 hours for Corporate Reporting and Strategic Business Management; 4 hours for the Case Study
  • Exam fee: Per module: GBP 75 + P50 admin (Certificate), GBP 105 + P50 (Professional), GBP 180 + P100 (Advanced), GBP 270 + P100 (Case Study). Student registration P800 and annual subscription P800.

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

BICA Qualification Study Tips from Top Performers

1Study the Botswana tax law now in force: the Income Tax Act, Value Added Tax Act and the new Tax Administration Act all commenced on 1 July 2026, changing the company rate to 24.5%, adding a 27.5% top individual bracket, shortening the monthly withholding tax deadline to 14 days and creating a Tax Tribunal. Older notes and past papers still cite the repealed rules.
2Master the Botswana Companies Act (Cap. 42:01), especially the section 4 solvency test, which requires assets to exceed liabilities PLUS stated capital, directors' duties and the interests register.
3Practice multi-step IFRS financial statement consolidations, lease calculations, and financial instrument classifications.
4Thoroughly understand the International Standards on Auditing (ISAs) and the BICA / IESBA Code of Ethics threat-and-safeguard framework.
5Work through quantitative problems in capital budgeting (NPV/IRR with taxation), WACC, variance analysis, and foreign exchange hedging.

Frequently Asked Questions

What is the BICA Qualification?

The BICA Qualification is the professional accountancy qualification established by the Botswana Institute of Chartered Accountants (BICA) under the Accountants Act, 2010. Developed through a twinning arrangement with ICAEW, it qualifies candidates as BICA Chartered Accountants with reciprocal international recognition.

What are the levels and modules in the BICA Qualification?

The qualification comprises 15 modules across 3 levels. The six Certificate Level modules are Accounting, Assurance, 'Business, Technology and Finance', Law, Management Information and Principles of Taxation. The six Professional Level modules are Audit and Assurance, Business Strategy and Technology, Financial Accounting and Reporting, Financial Management, Business Planning: Taxation and Tax Compliance. The three Advanced Level modules are Corporate Reporting, Strategic Business Management and the Case Study, which must be attempted last. Law, Principles of Taxation, Tax Compliance and Business Planning: Taxation are Botswana local variants examined on Botswana legislation.

What are the passing scores for BICA examinations?

The pass mark is 55% for Certificate Level and Professional Level examinations, and 50% for the Advanced Level examinations and the Case Study. Candidates get a maximum of four attempts at each Certificate and Professional Level module, with no attempt limit at Advanced Level.

What practical experience and ethics requirements are needed to qualify as a BICA CA?

In addition to passing all 15 exam modules, candidates must complete 450 days of Practical Work Experience under a training agreement with an authorised training employer, record professional development, and complete the Ethics and Professional Scepticism (EPS) programme. The 450 days normally take three to five years.

How much do BICA exams cost and when are they held?

Exam fees are GBP 75 plus a P50 administration fee per Certificate module, GBP 105 plus P50 per Professional module, GBP 180 plus P100 per Advanced module, and GBP 270 plus P100 for the Case Study, on top of P800 student registration and P800 annual subscription. BICA runs four Professional Level sittings and two Advanced Level sittings each year, with the Botswana local variant papers examined in June and December.

Is this free practice test the same format as the real BICA exams?

No. BICA modules mix objective questions with written computations, scenario answers and a four-hour case study, and the Botswana Law and taxation variants are paper-based. This bank is 100 four-option multiple-choice questions in English, written as a study aid to drill the underlying standards, legislation and techniques. Use it alongside the official BICA learning materials and past local variant papers, not instead of written practice.