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Free Practice Questions for KASNEB CPA Foundation

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Key Facts: KASNEB CPA Foundation Exam

6 papers

Foundation Level Subjects (CA11–CA16)

KASNEB CPA Programme

50%

Minimum Pass Mark Per Paper

KASNEB Examination Regulations

Kshs 7,500

CPA Programme Registration Fee

KASNEB Fee Structures

Kshs 1,400

Foundation-Level Paper Examination Fee

KASNEB Fee Structures

3 hours

Official Paper Duration

KASNEB Examination Timetables

C+

Minimum KCSE Mean Grade for CPA Entry

KASNEB CPA Programme

KASNEB CPA Foundation Level covers six papers (CA11–CA16). Register with KASNEB for Kshs 7,500, book each paper for Kshs 1,400, and pass with at least 50% at April, August, or December sittings before progressing to Intermediate Level.

Sample KASNEB CPA Foundation Practice Questions

Try these sample questions to review concepts for the KASNEB CPA Foundation exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 125+ question experience with AI tutoring.

1The accounting equation states that Assets = Liabilities + Equity. If a business borrows Ksh 500,000 from a bank, which entry correctly records the transaction?
A.Debit Loan Payable Ksh 500,000; Credit Bank Ksh 500,000
B.Debit Bank Ksh 500,000; Credit Loan Payable Ksh 500,000
C.Debit Bank Ksh 500,000; Credit Capital Ksh 500,000
D.Debit Capital Ksh 500,000; Credit Bank Ksh 500,000
Explanation: Borrowing increases cash (an asset) and creates a liability to the lender. The double entry is debit Bank and credit Loan Payable, keeping the accounting equation balanced.
2Which financial statement reports the financial position of an entity at a specific date?
A.Statement of financial position (balance sheet)
B.Statement of profit or loss
C.Statement of cash flows
D.Statement of changes in equity
Explanation: The statement of financial position (balance sheet) shows assets, liabilities, and equity at a point in time, giving a snapshot of financial position.
3Under the accrual basis of accounting, revenue is recognised when:
A.Cash is received from the customer
B.An invoice is printed but not yet delivered
C.It is earned, regardless of when cash is received
D.The tax return is filed with KRA
Explanation: Accrual accounting matches revenue to the period in which it is earned and expenses to the period in which they are incurred, independent of cash timing.
4A trial balance that does not balance MOST likely indicates:
A.All ledger accounts contain only credit balances
B.An error in posting where debits do not equal credits
C.Depreciation has been charged on all non-current assets
D.The business has made a net profit for the period
Explanation: Every journal entry must have equal debits and credits. Unequal totals in a trial balance usually signal a posting or extraction error.
5Which document is the book of original entry where transactions are first recorded chronologically?
A.Ledger
B.Journal (general journal)
C.Trial balance
D.Statement of financial position
Explanation: The general journal is the book of original entry where transactions are first recorded in date order before posting to ledger accounts.
6Straight-line depreciation on a machine costing Ksh 1,200,000 with residual value Ksh 200,000 over 5 years gives annual depreciation of:
A.Ksh 240,000
B.Ksh 200,000
C.Ksh 400,000
D.Ksh 1,000,000
Explanation: Depreciable amount = cost − residual value = 1,200,000 − 200,000 = 1,000,000. Annual straight-line depreciation = 1,000,000 ÷ 5 = Ksh 200,000.
7Which inventory valuation method assumes the oldest purchases are sold first?
A.LIFO (Last-In, First-Out)
B.Weighted average
C.Specific identification
D.FIFO (First-In, First-Out)
Explanation: FIFO assumes the earliest inventory purchased is the first sold, leaving newer costs in closing inventory.
8A credit balance in the cash book but a debit balance on the bank statement may be explained by:
A.Bank charges not yet recorded in the cash book
B.Direct credits by customers not yet recorded
C.Errors in the bank statement only
D.Unpresented cheques issued by the business
Explanation: Unpresented cheques reduce the cash book balance but do not yet reduce the bank statement balance, a common reconciling item.
9Prepaid rent of Ksh 120,000 for 12 months paid on 1 October should at 31 December include prepaid rent of:
A.Ksh 30,000
B.Ksh 120,000
C.Ksh 10,000
D.Ksh 90,000
Explanation: Three months (October–December) have expired; nine months remain prepaid. Prepaid rent = 9/12 × 120,000 = Ksh 90,000.
10The primary purpose of a petty cash imprest system is to:
A.Control small cash payments through a fixed float replenished to the original amount
B.Eliminate the need for any supporting vouchers
C.Replace all bank payments for operating expenses
D.Record only non-cash transactions in the ledger
Explanation: Under an imprest system a fixed float is maintained; expenditures are supported by vouchers and the float is replenished to restore the original amount.

About the KASNEB CPA Foundation Exam

The KASNEB CPA Foundation Level is the first stage of Kenya's Certified Public Accountants qualification. Candidates sit six papers: CA11 Financial Accounting, CA12 Communication Skills, CA13 Introduction to Law and Governance, CA14 Economics, CA15 Quantitative Analysis, and CA16 Information Communication Technology. Each paper is a three-hour written examination held at April, August, and December sittings. This free practice bank reformats foundation syllabus content into 100 multiple-choice items for efficient revision across all six subjects.

Exam sponsor: Kenya Accountants and Secretaries National Examinations Board (KASNEB). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

100 questions

Time Limit

3 hours per paper (six foundation papers examined separately)

Passing Score

50% per paper

Exam / Certification Fees

Kshs 1,400 per foundation-level paper; Kshs 7,500 initial registration fee

Exam sponsor website

Reported exam pass rate: Not published. KASNEB does not publish a single official first-time pass-rate percentage for CPA Foundation Level papers. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

~18%

CA11: Financial Accounting

Double entry, books of account, trial balance, financial statements, depreciation, and inventory

~17%

CA12: Communication Skills

Communication process, written and oral skills, reports, meetings, and presentations

~17%

CA13: Introduction to Law and Governance

Kenyan law sources, Constitution, contract, tort, commercial law, and governance ethics

~17%

CA14: Economics

Microeconomics, macroeconomics, market structures, inflation, and national income

~16%

CA15: Quantitative Analysis

Algebra, statistics, probability, interest, ratios, and index numbers

~15%

CA16: Information Communication Technology

Computer systems, networks, databases, spreadsheets, and cybersecurity

Preparing for the KASNEB CPA Foundation Exam

What You Need to Know

  • Passing score: 50% per paper
  • Exam length: 100 questions
  • Time limit: 3 hours per paper (six foundation papers examined separately)
  • Exam / certification fees: Kshs 1,400 per foundation-level paper; Kshs 7,500 initial registration fee Official sources

Using Our Practice Resources

  • Work through all 125 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

KASNEB CPA Foundation: Suggested Study Strategy

1Start with CA11 Financial Accounting — double entry and financial statements underpin later reporting papers.
2Link CA13 law topics to the Constitution of Kenya 2010 and basic contract principles tested at foundation level.
3Practice CA15 calculations daily: percentages, simple interest, averages, and probability reward repetition.
4For CA16, know spreadsheet functions, database terminology, and common cybersecurity threats.
5Use CA12 to master report structure, meeting minutes, and professional email tone expected in practice.
6Book papers progressively rather than all six at once unless your study plan supports it.
7Keep annual KASNEB registration current through the student portal before each sitting.

Frequently Asked Questions

What is the KASNEB CPA Foundation Level?

It is the first stage of the CPA qualification in Kenya, comprising six papers: CA11 Financial Accounting, CA12 Communication Skills, CA13 Introduction to Law and Governance, CA14 Economics, CA15 Quantitative Analysis, and CA16 Information Communication Technology.

Who administers CPA examinations in Kenya?

KASNEB sets and administers CPA examinations at approved centres. Registration and examination booking are completed through the KASNEB student portal at online.kasneb.or.ke.

What is the pass mark for CPA foundation papers?

Candidates must score at least 50% to pass each KASNEB CPA paper. Failed papers are re-sat at a later examination sitting.

How much does the CPA Foundation Level cost?

New CPA students pay a registration fee of Kshs 7,500. Each foundation-level paper costs Kshs 1,400 in examination entry fees. Annual registration renewal is Kshs 2,000.

What are the entry requirements for CPA?

Candidates need a KCSE mean grade of C+ (Plus), a KASNEB diploma qualification, or another recognised diploma to register for the CPA programme.

How long is each foundation paper?

Each CPA foundation paper is allotted three hours at official KASNEB examination sittings.

When are KASNEB CPA examinations held?

KASNEB examinations are held three times per year in April, August, and December.

Are these practice questions multiple-choice?

Yes. The official CPA papers use written responses, but this free practice bank provides 100 multiple-choice items with explanations for efficient revision.