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100+ Free HKICPA QP Module 1 Accounting Practice Questions

HKICPA Qualification Programme Associate Level Module 1 Accounting (Hong Kong) practice questions are available now; exam metadata is being verified.

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2026 Statistics

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 Practice Questions

Verified exam format metadata for HKICPA Qualification Programme Associate Level Module 1 Accounting (Hong Kong) is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.