100+ Free CPA Canada Core 1 Practice Questions
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Key Facts: CPA Canada Core 1 Exam
4 hrs
Module Exam Length
CPA PEP Core Modules
~75
Objective Questions
CPA Core 1 Blueprint
60 min
Integrative Case
CPA Core 1 Blueprint
IFRS + ASPE
Frameworks Tested
CPA Canada Handbook
Financial Reporting
Primary Competency
CPA Competency Map
3
Attempts Per Module
CPA PEP Policy
CPA PEP Core 1: Financial Accounting and Reporting is the first CPA PEP core module. The 4-hour module final examination has approximately 75 objective-format questions (multiple choice, short answer, matching, true/false) plus one 60-minute integrative case. Financial Reporting is the dominant competency, covering IFRS (Part I of the CPA Canada Handbook) and ASPE (Part II), with integrated Assurance, Finance, and Taxation. CPA Canada does not publish a fixed raw passing percentage; responses are graded against assessment opportunities and objective performance. The exam is competency-map based, so topics may appear that are not in the module syllabus.
Sample CPA Canada Core 1 Practice Questions
Try these sample questions to test your CPA Canada Core 1 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1Under IFRS 15, when does an entity recognize revenue for a performance obligation satisfied over time?
2A Canadian private enterprise reporting under ASPE wants to capitalize development costs. Which condition is NOT required under ASPE Section 3064?
3Which of the following is a fundamental qualitative characteristic of useful financial information under the IFRS Conceptual Framework?
4Under IFRS 16, how does a lessee initially recognize an operating lease (excluding short-term and low-value exemptions)?
5A company purchased equipment for $500,000 with an estimated residual value of $50,000 and a useful life of 10 years. Using straight-line depreciation, what is the annual depreciation expense?
6Under IAS 2 Inventories, inventory is measured at:
7Under IFRS 9, a financial asset is measured at amortized cost only if which condition is met?
8Which financial statement reconciles opening and closing equity, showing contributions, distributions, and comprehensive income?
9Under IAS 37, a provision should be recognized when which of the following conditions is met?
10A bond with a face value of $100,000 is issued at $95,000. Under the effective interest method, the discount is:
About the CPA Canada Core 1 Exam
CPA PEP Core 1 is the first core module of Canada's CPA Professional Education Program. It teaches and tests Financial Reporting under IFRS and ASPE as the primary competency, integrated with Audit and Assurance, Finance, and Taxation, through an objective-format section and an integrative case based on the CPA Competency Map.
Assessment
Question count not published by the exam provider
Time Limit
4-hour computer-based module final examination
Passing Score
No published raw percentage; graded against assessment opportunities and objective performance using CPA Canada standard setting
Exam Fee
Core module tuition varies by provincial body (roughly CAD 1,200-1,400) plus CPA PEP and annual candidate dues; confirm current amounts with your CPA body (CPA Canada / CPA provincial and regional bodies)
CPA Canada Core 1 Exam Content Outline
Financial Reporting
IFRS and ASPE frameworks, the Conceptual Framework, financial statement presentation, and accounting for transactions including revenue (IFRS 15), leases (IFRS 16), financial instruments (IFRS 9), PP&E, inventories, impairment, provisions, income taxes, consolidation, and financial statement analysis.
Audit and Assurance
Assurance and non-assurance engagements, the audit risk model, materiality, financial statement assertions, professional skepticism, independence, and limited versus reasonable assurance under Canadian standards.
Finance
Capital budgeting using NPV, IRR, and payback, cost of capital and WACC, financial ratio and DuPont analysis, working capital management, and financing and leverage decisions.
Taxation
Canadian corporate and personal tax fundamentals: capital cost allowance, the capital gains inclusion rate, the small business deduction, integration through the dividend gross-up, current versus capital classification, and GST/HST.
Management Accounting
Cost-volume-profit and break-even analysis, contribution margin, relevant and sunk costs, absorption versus variable costing, activity-based costing, budgeting, and standard-cost variance analysis.
Enabling Competencies
Professional and ethical behaviour, problem-solving and decision-making, and communication, assessed largely through the integrative case and its assessment opportunities.
How to Pass the CPA Canada Core 1 Exam
What You Need to Know
- Passing score: No published raw percentage; graded against assessment opportunities and objective performance using CPA Canada standard setting
- Assessment: Question count not published by the exam provider
- Time limit: 4-hour computer-based module final examination
- Exam fee: Core module tuition varies by provincial body (roughly CAD 1,200-1,400) plus CPA PEP and annual candidate dues; confirm current amounts with your CPA body
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
CPA Canada Core 1 Study Tips from Top Performers
Frequently Asked Questions
How long is the CPA Canada Core 1 exam?
The CPA PEP Core 1 module final examination is a 4-hour computer-based exam. It includes an objective-format section of roughly 75 questions plus a 60-minute integrative case.
What does CPA Core 1 cover?
Core 1 focuses primarily on Financial Reporting under IFRS and ASPE, integrating Audit and Assurance, Finance, and Taxation. Management Accounting appears as a secondary area, and enabling competencies are assessed through the case.
What is the passing score for CPA Core 1?
CPA Canada does not publish a fixed raw passing percentage. The objective section and the integrative case are graded using standard setting, with case responses assessed against assessment opportunities on a Competent / Reaching Competent scale.
Which accounting frameworks are tested in Core 1?
Core 1 tests both IFRS (Part I of the CPA Canada Handbook), used by publicly accountable enterprises, and ASPE (Part II), used by private enterprises. Knowing the key differences between the two is essential.
How many questions are on the CPA Core 1 exam?
The objective-format section has approximately 75 questions in mixed formats (multiple choice, short answer, matching, and true/false), followed by one integrative case worth about 60 minutes. CPA Canada does not publish a fixed count.
How many attempts do I get for CPA Core 1?
Under CPA PEP policy, candidates generally have a limited number of attempts per module (commonly three). If you are unsuccessful, you may rewrite the module final examination subject to your provincial body's rules.
Is Core 1 based on the syllabus or the Competency Map?
Core 1 is based on the CPA Competency Map rather than only the module syllabus. This means topics within the relevant competencies can be tested even if they were not explicitly covered in the module practice materials.
How much time should I spend studying for Core 1?
Many candidates report spending about 100-150 hours, with the majority of time on Financial Reporting because it is the dominant competency in both the objective questions and the case.