100+ Free CAPE Accounting Unit 1 Practice Questions
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Key Facts: CAPE Accounting Unit 1 Exam
45 items
Paper 01 has 45 compulsory multiple-choice items, 15 from each Module
CXC CAPE Accounting Syllabus CXC A8/U2/22, Outline of Assessment
1 hour 30 minutes
Time allowed for CAPE Accounting Unit 1 Paper 01
CXC CAPE Accounting Syllabus, Paper 01
30%
Paper 01's contribution to the Unit 1 grade
CXC CAPE Accounting Syllabus, Outline of Assessment
3 Modules
Theory/Recording/Control; Preparation of Financial Statements; Financial Reporting and Interpretation
CXC CAPE Accounting Syllabus, Structure of the Syllabus
80% / 20%
Split between external written papers and School-Based Assessment (or Paper 032)
CXC CAPE Accounting Syllabus, Outline of Assessment
IFRS for SMEs 2015
Basis used in the syllabus for principles and presentation of financial statements
CXC CAPE Accounting Syllabus CXC A8/U2/22
150 hours
Guided learning hours intended for Unit 1 across its three Modules
CXC CAPE Accounting Syllabus / subject page
100
Free original practice questions in this bank
OpenExamPrep
CAPE Accounting Unit 1 (Financial Accounting) is set by the Caribbean Examinations Council and covers three Modules: Accounting Theory, Recording and Control Systems; Preparation of Financial Statements; and Financial Reporting and Interpretation. Paper 01 is a compulsory multiple-choice paper of 45 four-option items, 15 from each Module, lasting 1 hour 30 minutes and worth 30% of the Unit grade. Paper 02 (three compulsory questions) is 50% and School-Based Assessment or Paper 032 is 20%. Results are reported as Grades I–VII rather than a simple pass mark, and silent non-programmable calculators are allowed (not financial calculators). This 100-question bank gives original CAPE-level multiple-choice practice across all three Modules.
Sample CAPE Accounting Unit 1 Practice Questions
Try these sample questions to test your CAPE Accounting Unit 1 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1Which statement best describes the primary purpose of financial accounting?
2Under the accrual basis of accounting, revenue is generally recognised when:
3The CAPE Accounting syllabus uses which framework as the basis for applying principles and presenting financial statements?
4Which qualitative characteristic means that information can influence users' economic decisions by helping them evaluate past, present or future events?
5The accounting principle that requires expenses to be recognised in the same period as the related revenues is called the:
6Which element of financial statements represents residual interest in the assets of the entity after deducting all its liabilities?
7A company purchases office equipment for cash. The correct double-entry is:
8Which of the following is a capital reserve rather than a revenue reserve?
9When a company issues shares at par for cash, the journal entry typically:
10An internal control procedure that requires two authorised signatures on cheques above a set amount primarily strengthens control over:
About the CAPE Accounting Unit 1 Exam
CAPE Accounting Unit 1, titled Financial Accounting, is the first of two independent Units in the Caribbean Examinations Council's Caribbean Advanced Proficiency Examination in Accounting. It comprises three Modules: Module 1 Accounting Theory, Recording and Control Systems; Module 2 Preparation of Financial Statements; and Module 3 Financial Reporting and Interpretation. The Unit applies International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs) 2015 and is assessed by two external written papers and a school-based project (or Paper 032 for private candidates). Paper 01 is a compulsory multiple-choice paper of 45 items, 15 from each Module, sat in 1 hour 30 minutes and worth 30% of the Unit. CAPE Accounting is pitched at post-16, GCE A-Level standard and supports further study and careers in accounting and finance across the Caribbean.
Assessment
Paper 01: 45 compulsory multiple-choice items, 15 from each of the three Modules, each worth 1 mark (45 marks weighted to 90; 30% of the Unit). Paper 02: three compulsory questions, one per Module (2 hours 45 minutes; 50%). School-Based Assessment Paper 031 or private-candidate Paper 032 (20%).
Time Limit
Paper 01 is 1 hour 30 minutes (90 minutes). Paper 02 is 2 hours 45 minutes. Paper 032 (private candidates) is 2 hours.
Passing Score
No fixed pass mark. CAPE results are reported as Grades I to VII (Grade I highest), combining external papers (80%) and School-Based Assessment or Paper 032 (20%). Paper 01 alone contributes 30% of the Unit grade.
Exam Fee
CAPE subject-entry fees are set by CXC and collected by each territory's Local Registrar. For 2026 sittings a common published scale is about USD $29.00 per CAPE Unit (subject) plus a one-time CAPE candidate entry of about USD $20.25; local levies may apply. Confirm with your school or registrar. (Caribbean Examinations Council (CXC))
CAPE Accounting Unit 1 Exam Content Outline
Module 1: Accounting Theory, Recording and Control Systems
Paper 01 draws 15 items here. Topics include the nature and scope of financial accounting and the accounting cycle; cash versus accrual bases; IFRS for SMEs and the conceptual framework (qualitative characteristics, elements, principles); double-entry journal entries for investments, long-term liabilities, share issues and redemptions, and capital/revenue reserves; internal controls over inventory, cash, receivables and payables; internal versus external auditors; ethics (confidentiality, objectivity, integrity, conflicts of interest); and technology and EDP controls in accounting systems.
Module 2: Preparation of Financial Statements
Paper 01 draws 15 items here. Topics include forms of business organisation (sole trader, partnership, company, cooperative, NGO); private, public and statutory corporations; preparation of the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Financial Position using IFRS for SMEs; incomplete records (control accounts, statements of affairs, error correction); income and expenditure accounts for non-profits; partnership admission, retirement and dissolution; purchase/incorporation of an unincorporated business; shareholders' equity and capital raising/repayment; and corporation tax on net income.
Module 3: Financial Reporting and Interpretation
Paper 01 draws 15 items here. Topics include social and ethical issues in reporting (CSR, window dressing); inflation effects and current cost/fair value alternatives; provisions, contingent liabilities/assets and events after the reporting period (IFRS for SMEs Sections 21 and 32); published financial statement presentation and notes; Statement of Cash Flows by the indirect method; liquidity, solvency, activity and profitability ratios; significance and limitations of financial statements; vertical and horizontal analysis; and distinguishing liquidation from receivership.
How to Pass the CAPE Accounting Unit 1 Exam
What You Need to Know
- Passing score: No fixed pass mark. CAPE results are reported as Grades I to VII (Grade I highest), combining external papers (80%) and School-Based Assessment or Paper 032 (20%). Paper 01 alone contributes 30% of the Unit grade.
- Assessment: Paper 01: 45 compulsory multiple-choice items, 15 from each of the three Modules, each worth 1 mark (45 marks weighted to 90; 30% of the Unit). Paper 02: three compulsory questions, one per Module (2 hours 45 minutes; 50%). School-Based Assessment Paper 031 or private-candidate Paper 032 (20%).
- Time limit: Paper 01 is 1 hour 30 minutes (90 minutes). Paper 02 is 2 hours 45 minutes. Paper 032 (private candidates) is 2 hours.
- Exam fee: CAPE subject-entry fees are set by CXC and collected by each territory's Local Registrar. For 2026 sittings a common published scale is about USD $29.00 per CAPE Unit (subject) plus a one-time CAPE candidate entry of about USD $20.25; local levies may apply. Confirm with your school or registrar.
Keys to Passing
- Complete 500+ practice questions
- Score 80%+ consistently before scheduling
- Focus on highest-weighted sections
- Use our AI tutor for tough concepts
CAPE Accounting Unit 1 Study Tips from Top Performers
Frequently Asked Questions
How many questions are on CAPE Accounting Unit 1 Paper 01?
Paper 01 has 45 compulsory multiple-choice items, with 15 drawn from each of the three Modules. Each item is worth 1 mark (45 marks, weighted to 90).
How long is CAPE Accounting Unit 1 Paper 01?
Paper 01 lasts 1 hour 30 minutes (90 minutes). Paper 02 is separate and lasts 2 hours 45 minutes.
What does CAPE Accounting Unit 1 cover?
Unit 1 is Financial Accounting and covers three Modules: Accounting Theory, Recording and Control Systems; Preparation of Financial Statements; and Financial Reporting and Interpretation. Knowledge of the entire Unit is expected on Paper 01.
How is CAPE Accounting Unit 1 graded?
There is no simple pass mark. Results are reported on a grade scale from Grade I (highest) to Grade VII, combining external papers (80%) and School-Based Assessment or Paper 032 (20%). Paper 01 contributes 30% of the Unit grade; Paper 02 contributes 50%.
Can I use a calculator on CAPE Accounting Unit 1?
Yes. Silent non-programmable calculators are allowed. Financial calculators are not allowed.
Are these official CXC practice questions?
No. These are original OpenExamPrep questions modelled on the CAPE Accounting Unit 1 syllabus and Paper 01 format. CXC publishes official syllabuses, specimen papers and past papers separately through cxc.org and the CXC Store.