100+ Free HKICPA QP Module 1 Accounting Practice Questions

Prepare for the HKICPA Qualification Programme Associate Level Module 1 Accounting (Hong Kong) exam with instant access — no signup required.

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Key Facts: HKICPA QP Module 1 Accounting Exam

Module 1

Associate Level Accounting — first of ten Associate modules in the QP

https://www.hkeaa.edu.hk/en/IPE/hkicpa/index.html

100% MCQ CBE

Associate Module 1 assessed as closed-book computer-based examination with 100% MCQs

https://www.hkicpa.org.hk/en/Become-a-Hong-Kong-CPA/Qualification-Programme/Professional-accountancy-education/Associate-Level

HKEAA centres

Associate Modules 1–9 sat at equipped examination centres (Hong Kong)

https://www.hkeaa.edu.hk/en/IPE/hkicpa/index.html

3 content areas

Principles; books and financial statements; financial management and internal control

Published Module 1 content outlines (e.g. training provider syllabi reflecting HKICPA scope)

December diet

Module 1 offered once a year in the December Associate session (e.g. 25 Nov 2026)

https://www.hkicpa.org.hk/en/Become-a-Hong-Kong-CPA/Qualification-Programme/Timetable

1h 45m

Module 1 examination duration on the HKICPA December 2026 timetable (2:30–4:15 pm)

https://www.hkicpa.org.hk/en/Become-a-Hong-Kong-CPA/Qualification-Programme/Timetable

100

Free original practice questions in this bank

OpenExamPrep

HKICPA QP Associate Module 1 Accounting is a foundation closed-book 100% MCQ CBE on accounting principles, books and financial statements, and financial management/internal control. It is delivered at HKEAA-equipped centres (Associate Modules 1–9) and sits in the December diet for about 1 hour 45 minutes. Confirm fees and pass rules via HKICPA. This 100-question bank gives original MCQ practice across the three published content areas.

Sample HKICPA QP Module 1 Accounting Practice Questions

Try these sample questions to test your HKICPA QP Module 1 Accounting 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 for external users?

A.To record, classify and communicate an entity's financial information under an accepted framework

B.To set selling prices using contribution margins only

C.To prepare only cash budgets for internal managers

D.To negotiate employment contracts with staff

Explanation: Financial accounting records, classifies and communicates economic information to external users such as investors, lenders and regulators under an accepted reporting framework.

2Under the accrual basis of accounting, revenue is generally recognised when:

A.Cash is received from the customer

B.It is earned, regardless of when cash is received

C.The directors declare a dividend

D.The inventory order is placed with a supplier

Explanation: Accrual accounting recognises revenue when earned (and expenses when incurred), not necessarily when cash is received.

3The fundamental accounting equation is:

A.Liabilities = Assets + Equity

B.Assets = Revenue − Expenses

C.Assets = Liabilities + Equity

D.Equity = Assets + Liabilities

Explanation: The accounting equation Assets = Liabilities + Equity underpins double-entry bookkeeping; every transaction preserves this equality.

4Under the business entity concept, which treatment is correct?

A.The owner's personal residence is recorded as a business non-current asset

B.Owner drawings increase business revenue

C.Personal grocery bills are debited to business purchases

D.Business transactions are accounted for separately from the owner's personal affairs

Explanation: The separate entity (business entity) concept requires the business to be accounted for independently of its owners' personal transactions.

5Going concern assumes that the entity will:

A.Continue in operation for the foreseeable future

B.Liquidate all assets within the next month

C.Never report liabilities

D.Always use cash-basis accounting

Explanation: Going concern assumes the entity will continue operating for the foreseeable future, supporting historical-cost measurement rather than forced liquidation values.

6The matching principle primarily requires that:

A.All assets be stated at current replacement cost

B.Expenses be recognised in the same period as the related revenues

C.Cash receipts equal cash payments each month

D.Owners' capital always equal liabilities

Explanation: Matching links expenses to the revenues they help generate in the same period so that profit reflects that period's activity.

7Which qualitative characteristic means information can influence users' economic decisions?

A.Physical existence of assets

B.Verifiability only

C.Relevance

D.Number of employees

Explanation: Relevance means information is capable of making a difference in users' decisions (predictive and/or confirmatory value).

8Faithful representation in the conceptual framework primarily means information is:

A.Presented only in narrative form

B.Always optimistic about future profits

C.Limited to cash receipts only

D.Complete, neutral and free from material error

Explanation: Faithful representation requires information to be complete, neutral and free from material error so that it depicts economic phenomena faithfully.

9Materiality means that information is material if:

A.Omitting or misstating it could influence users' decisions

B.It always exceeds 10% of revenue by fixed rule for every entity

C.It relates only to cash transactions

D.It appears in the directors' personal tax return

Explanation: Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that primary users make on the basis of the financial statements.

10Historical cost for an item of inventory purchased for cash is generally:

A.The expected selling price next year

B.The cash price paid to acquire it

C.The directors' estimate of replacement cost only

D.Zero until sold

Explanation: Historical cost is based on the consideration given to acquire an asset. For cash purchases of inventory, that is typically the cash price paid (plus directly attributable costs where applicable).

About the HKICPA QP Module 1 Accounting Exam

HKICPA Qualification Programme Associate Level Module 1 Accounting is the foundational accounting module for aspiring Hong Kong CPAs. Published outlines describe coverage of accounting principles, preparation of accounting books and financial statements, and financial management and internal control. Assessment is a closed-book 100% MCQ computer-based examination sat at HKEAA-equipped centres for Associate Modules 1–9. Modules 1–9 are each offered once a year across the June/December sessions; Module 1 is in the December diet (e.g. 25 Nov 2026, 1 hour 45 minutes). Later Associate modules (especially Module 6 Financial Accounting) deepen HKFRS application; Module 1 focuses on fundamentals.

Assessment

Associate Level Module 1 Accounting — closed-book computer-based examination (100% MCQs) covering accounting principles, preparation of accounting books and financial statements, and financial management and internal control.

Time Limit

1 hour 45 minutes (HKICPA December 2026 timetable: Module 1 at 2:30 pm – 4:15 pm). Confirm any timetable updates for your sitting on the HKICPA/HKEAA schedule.

Passing Score

Per HKICPA QP examination regulations — confirm the current Associate Module pass standard in the Student Handbook / Learning Centre for your sitting.

Exam Fee

Per current HKICPA QP examination fee schedule for Associate modules (published to registered students). Confirm Module 1 enrolment fee in the Student Centre before the enrolment deadline. (Hong Kong Institute of Certified Public Accountants (HKICPA); CBE delivery with Hong Kong Examinations and Assessment Authority (HKEAA))

HKICPA QP Module 1 Accounting Exam Content Outline

34%

Accounting principles

Nature and purpose of accounting; conceptual ideas (accrual, going concern, matching, entity, materiality); elements of financial statements; double-entry and the accounting equation; capital vs revenue expenditure; and introductory depreciation/measurement concepts.

33%

Books and financial statements

Books of original entry and ledgers; control accounts; bank reconciliations; accruals and prepayments; inventory and cost of sales; and preparing statement of profit or loss and statement of financial position extracts.

33%

Financial management and internal control

Working capital and core ratios (liquidity, activity, profitability, gearing); budgeting and basic variance interpretation; and internal control objectives, segregation of duties, and key cash, purchases and IT controls.

How to Pass the HKICPA QP Module 1 Accounting Exam

What You Need to Know

Passing score: Per HKICPA QP examination regulations — confirm the current Associate Module pass standard in the Student Handbook / Learning Centre for your sitting.
Assessment: Associate Level Module 1 Accounting — closed-book computer-based examination (100% MCQs) covering accounting principles, preparation of accounting books and financial statements, and financial management and internal control.
Time limit: 1 hour 45 minutes (HKICPA December 2026 timetable: Module 1 at 2:30 pm – 4:15 pm). Confirm any timetable updates for your sitting on the HKICPA/HKEAA schedule.
Exam fee: Per current HKICPA QP examination fee schedule for Associate modules (published to registered students). Confirm Module 1 enrolment fee in the Student Centre before the enrolment deadline.

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

HKICPA QP Module 1 Accounting Study Tips from Top Performers

1Map revision to the three Module 1 areas: principles, books/statements, and financial management/internal control—do not skip controls/ratios for pure double-entry drill.

2Practise bank reconciliations, accruals/prepayments, and cost-of-sales workings under timed conditions.

3Drill debit/credit rules and error types that still allow a trial balance to agree.

4Memorise core ratio formulae (current, acid-test, inventory/receivables days, gross margin, ROCE) and interpret what a change implies for working capital.

5Use the official HKICPA CBE practice platform so navigation and objective-item formats are familiar on exam day.

6Keep Module 1 at foundation depth; save advanced HKFRS consolidation and complex standards for Module 6 and Professional Level.

Frequently Asked Questions

What is HKICPA QP Associate Module 1 Accounting?

It is the first Associate Level module of the Hong Kong Institute of Certified Public Accountants Qualification Programme, covering accounting principles, books and financial statements, and financial management and internal control.

How is Module 1 assessed?

It is a closed-book computer-based examination with 100% multiple-choice questions. Associate Modules 1–9 are taken at HKEAA-equipped centres in Hong Kong (with Mainland centre arrangements as published).

When can I sit Module 1?

Associate Modules 1–9 are each offered once a year, split across the June and December examination sessions. Module 1 sits in the December diet (for example, 25 November 2026 on the HKICPA Dec 2026 timetable). Check the current HKICPA/HKEAA schedule for your sitting.

How long is the Module 1 exam?

1 hour 45 minutes. On the HKICPA December 2026 timetable, Module 1 is scheduled from 2:30 pm to 4:15 pm.

Are these official HKICPA past questions?

No. These are original OpenExamPrep practice questions modelled on the published Module 1 content areas. Use HKICPA Learning Centre materials and the official CBE practice platform for institute resources.

100+ Free HKICPA QP Module 1 Accounting Practice Questions

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