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Korea Computerized Tax Accounting Level 2 (전산세무 2급, South Korea)

Practice Questions
Exam Review

Key Facts: Korea Computerized Tax Accounting Level 1 Exam

90 Minutes

Official integrated theory and practical testing duration

KACPTA Examination Regulations

70 / 100

Passing score threshold (Combined Theory 30% + Practical 70%)

KACPTA Certification Standards

10%–20%

Typical national historical pass rate for Level 1

KACPTA Annual Qualification Statistics

KRW 30,000

National standard test registration fee

KACPTA License Portal

6 Sessions

Nationwide exam test dates scheduled annually

KACPTA Official Annual Schedule

KcLep

Standard national computerized tax accounting software platform

KACPTA Education & Examination Center

The Korea Computerized Tax Accounting Level 1 (전산세무 1급) exam is administered bi-monthly by KACPTA across South Korea. Testing 90 minutes of integrated theoretical and practical software skills, passing requires at least 70 out of 100 points. The core differentiator of Level 1 is exhaustive corporate tax reconciliation (법인세 세무조정). This 100-question practice bank delivers comprehensive coverage across advanced financial accounting, cost and variance analysis, corporate tax adjustments, VAT common input tax settlement, and income tax year-end settlement.

Sample Korea Computerized Tax Accounting Level 1 Practice Questions

Try these sample questions to review concepts for the Korea Computerized Tax Accounting Level 1 exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under General Accounting Standards for Non-Public Entities (일반기업회계기준), how should inventory valuation loss (재고자산평가손실) resulting from the lower-of-cost-or-market (LCM / 저가법) rule and normal inventory shrinkage loss (정상 감모손실) be treated in the income statement?
A.Both inventory valuation loss and normal shrinkage loss are added to cost of goods sold (매출원가).
B.Both inventory valuation loss and normal shrinkage loss are recognized as non-operating expenses.
C.Inventory valuation loss is added to cost of goods sold, while normal shrinkage loss is recognized as non-operating expense (영업외비용).
D.Inventory valuation loss is recognized as non-operating expense, while normal shrinkage loss is added to cost of goods sold.
Explanation: Under Korean General Accounting Standards for Non-Public Entities (일반기업회계기준 제10장 재고자산), inventory valuation loss resulting from applying the lower-of-cost-or-market rule (저가법) is recognized as an addition to cost of goods sold (매출원가에 가산). Normal inventory shrinkage loss (정상 감모손실) is also recognized as part of cost of goods sold because it possesses cost character (원가성 인정). Abnormal inventory shrinkage loss (비정상 감모손실) is recognized as non-operating expense.
2At the end of Year 1, Company Hanguk holds 1,000 units of merchandise with an acquisition cost of KRW 10,000 per unit. A physical count reveals 950 units on hand. The estimated selling price per unit is KRW 9,200 and estimated sales costs are KRW 400 per unit. Of the missing 50 units, 30 units are considered normal shrinkage and 20 units are abnormal shrinkage. What is the total inventory valuation loss (재고자산평가손실) to be recognized?
A.KRW 760,000
B.KRW 1,140,000
C.KRW 1,164,000
D.KRW 1,200,000
Explanation: Net Realizable Value (순실현가능가치) = KRW 9,200 - KRW 400 = KRW 8,800 per unit. Valuation loss per unit = Cost (KRW 10,000) - NRV (KRW 8,800) = KRW 1,200. Inventory valuation loss is applied to the actual ending inventory remaining after physical count (실제 수량 = 950 units). Thus, total inventory valuation loss = 950 units × KRW 1,200 = KRW 1,140,000. Shrinkage is accounted for separately on the 50 missing units.
3Which of the following statements regarding inventory cost flow assumptions under Korean General Accounting Standards (일반기업회계기준) is INCORRECT?
A.In an inflationary environment with constant or rising inventory quantities, the FIFO method (선입선출법) results in higher ending inventory valuation and higher net income than the LIFO method (후입선출법).
B.Reversal of inventory valuation allowance (재고자산평가손실 환입) is limited to the original valuation loss previously recognized.
C.Under the perpetual inventory system (계속기록법), applying the weighted-average method yields the periodic weighted-average cost (총평균법).
D.When using the moving-average method (이동평균법), a new unit average cost is computed every time additional inventory is purchased.
Explanation: Applying the weighted-average method under a perpetual inventory system (계속기록법) is the moving-average method (이동평균법), where unit costs are updated after each purchase. In contrast, the periodic weighted-average method (총평균법) applies the average cost across the entire period under a periodic inventory system (실지재고조사법). Therefore, statement 0 is incorrect.
4Company Daehan purchased specialized machinery for KRW 50,000,000 (excluding VAT). In addition, it incurred customs duties of KRW 2,000,000, shipping costs of KRW 1,500,000, site preparation and installation costs of KRW 3,000,000, and trial run (시운전) costs of KRW 1,200,000. During the trial run, sample products were produced and sold for KRW 400,000. Finally, staff training costs to operate the machine were KRW 800,000. What is the initial acquisition cost (취득원가) of the machinery?
A.KRW 56,500,000
B.KRW 57,300,000
C.KRW 57,700,000
D.KRW 58,100,000
Explanation: The acquisition cost of property, plant, and equipment includes all directly attributable costs necessary to bring the asset to the location and condition for its intended use: Purchase price (50,000,000) + Customs duties (2,000,000) + Shipping (1,500,000) + Site installation (3,000,000) + Net trial run cost (1,200,000 - 400,000 = 800,000) = KRW 57,300,000. Staff training costs (KRW 800,000) are recognized as an expense in profit or loss when incurred.
5Under the revaluation model (재평가모형) of General Accounting Standards, Company Seoul revalues a building at the end of Year 1. The carrying amount before revaluation is KRW 80,000,000 and the fair value is KRW 100,000,000. At the end of Year 2, the fair value drops to KRW 65,000,000. Assuming no depreciation for Year 2 for simplicity, what is the accounting treatment at the end of Year 2?
A.Recognition of impairment loss (손상차손) of KRW 15,000,000 in profit or loss with no change to other comprehensive income.
B.Recognition of revaluation loss of KRW 35,000,000 directly in profit or loss.
C.Reduction of revaluation surplus by KRW 35,000,000 in other comprehensive income.
D.Reversal of revaluation surplus (재평가잉여금) of KRW 20,000,000 in OCI, and recognition of revaluation loss (재평가손실) of KRW 15,000,000 in profit or loss (당기손익).
Explanation: At the end of Year 1, a revaluation surplus (재평가잉여금) of KRW 20,000,000 was recognized in other comprehensive income (기타포괄손익누계액). At the end of Year 2, the asset fair value drops by KRW 35,000,000 (from 100M to 65M). The decrease must first offset the accumulated revaluation surplus of KRW 20,000,000 for that same asset in OCI; any excess deficit of KRW 15,000,000 is recognized as a revaluation loss in profit or loss (당기비용).
6At the end of Year 1, Company Samil assesses a machine for impairment. The carrying amount is KRW 30,000,000. Its net fair value (순공정가치) is KRW 22,000,000, and its value in use (사용가치) is KRW 24,000,000. What is the impairment loss (유형자산손상차손) to be recognized for Year 1?
A.KRW 8,000,000
B.KRW 7,000,000
C.KRW 6,000,000
D.KRW 0
Explanation: Recoverable amount (회수가능액) is defined as the higher of net fair value (순공정가치, KRW 22,000,000) and value in use (사용가치, KRW 24,000,000). Thus, the recoverable amount is KRW 24,000,000. The impairment loss is the excess of carrying amount over recoverable amount: KRW 30,000,000 - KRW 24,000,000 = KRW 6,000,000.
7Under General Accounting Standards (일반기업회계기준 제11장 무형자산), which of the following conditions is NOT an essential requirement for capitalizing internal development expenditures as intangible assets (개발비)?
A.Ability to reliably measure the expenditure attributable to the intangible asset during its development
B.Intention to complete the intangible asset and use or sell it
C.Securing a patent or formal government regulatory approval prior to commercialization
D.Technical feasibility of completing the intangible asset so that it will be available for use or sale
Explanation: Formal patent acquisition or government approval is not a mandatory prerequisite for capitalizing development costs (개발비). Instead, the standard requires satisfying six specific criteria: (1) technical feasibility, (2) intention to complete, (3) ability to use or sell, (4) how the asset will generate probable future economic benefits, (5) availability of adequate resources, and (6) ability to reliably measure development expenditures.
8On January 1, Year 1, Company Hanguk issued 3-year bonds with a face value of KRW 10,000,000 at an issue price of KRW 9,502,600. The nominal coupon rate is 6% per annum, paid annually on December 31, and the market effective interest rate is 8%. What is the bond discount amortization (사채할인발행차금 상각액) and interest expense for Year 1 under the effective interest method (유효이자율법)?
A.Interest expense KRW 600,000; Discount amortization KRW 160,208
B.Interest expense KRW 760,208; Discount amortization KRW 160,208
C.Interest expense KRW 760,208; Discount amortization KRW 165,747
D.Interest expense KRW 800,000; Discount amortization KRW 200,000
Explanation: Year 1 interest expense = Beginning carrying value (KRW 9,502,600) × Effective interest rate (8%) = KRW 760,208. Nominal coupon interest paid = Face value (KRW 10,000,000) × Coupon rate (6%) = KRW 600,000. Bond discount amortization = Interest expense (KRW 760,208) - Nominal interest (KRW 600,000) = KRW 160,208. The carrying value increases to KRW 9,502,600 + KRW 160,208 = KRW 9,662,808.
9Continuing from the bond issued in Question 8 (Carrying value at end of Year 1 is KRW 9,662,808; coupon rate 6%; effective rate 8%), what is the bond carrying value (사채 장부가액) on the balance sheet as of December 31, Year 2 after recording the second annual interest payment?
A.KRW 9,762,808
B.KRW 9,835,833
C.KRW 9,925,000
D.KRW 10,000,000
Explanation: For Year 2: Beginning carrying value = KRW 9,662,808. Year 2 interest expense = KRW 9,662,808 × 8% = KRW 773,025. Nominal coupon paid = KRW 600,000. Year 2 discount amortization = KRW 773,025 - KRW 600,000 = KRW 173,025. Ending carrying value as of December 31, Year 2 = KRW 9,662,808 + KRW 173,025 = KRW 9,835,833.
10On December 31, Year 2, immediately after the annual coupon payment, Company Hanguk repurchases and retires bonds with a face value of KRW 10,000,000. The carrying amount of the bonds on that date is KRW 9,835,833, and the repurchase price paid in cash is KRW 9,700,000. What is the gain or loss on bond redemption (사채상환손익)?
A.Gain on bond redemption of KRW 135,833
B.Gain on bond redemption of KRW 300,000
C.Loss on bond redemption of KRW 135,833
D.Loss on bond redemption of KRW 164,167
Explanation: Gain/Loss on Bond Redemption = Carrying amount of bonds - Redemption payment. Here, Carrying amount = KRW 9,835,833 and Redemption price = KRW 9,700,000. Since the company extinguished a liability of KRW 9,835,833 by paying only KRW 9,700,000, it realizes a Gain on bond redemption (사채상환이익) of KRW 135,833 recognized in profit or loss.

About the Korea Computerized Tax Accounting Level 1 Exam

The Korea Computerized Tax Accounting Level 1 (전산세무 1급) examination is the most advanced national computerized tax and accounting certification in South Korea, administered by the Korean Association of Certified Public Tax Accountants (한국세무사회 / KACPTA) under authorization from the Ministry of Economy and Finance (기획재정부). The official 90-minute examination evaluates both theoretical proficiency (30% weight, 15 MCQs) and practical computer software execution (70% weight using the KcLep / 케이렙 system) in advanced financial accounting, managerial cost accounting, VAT, personal income tax year-end settlement, and, most crucially, corporate tax adjustments and tax reconciliation (법인세 세무조정). Certified Level 1 holders possess the comprehensive capability to manage corporate tax filings, perform complex statutory adjustments (손금불산입, 익금산입, 소득처분), and oversee corporate financial reporting. This 100-question practice bank provides an independent, bilingual-referenced English-language MCQ study adaptation by OpenExamPrep, featuring rigorous conceptual questions, statutory interpretations, and authentic quantitative calculations.

Exam sponsor: Korean Association of Certified Public Tax Accountants (한국세무사회 / KACPTA). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Performance-based assessment

Time Limit

90 minutes (Official Exam)

Passing Score

70 points or higher out of 100 (Combined Theory 30% and Practical 70%)

Exam / Certification Fees

KRW 30,000 (KACPTA 접수수수료, all 전산세무회계 grades; 자격증 발급비 KRW 6,000 extra)

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.

20%

Advanced Financial Accounting (재무회계 - 일반기업회계기준)

Core General Accounting Standards (일반기업회계기준): inventory costing methods, lower-of-cost-or-market valuation (저가법) and inventory valuation allowance (재고자산평가손실), tangible asset revaluation, depreciation mechanics, impairment loss and reversal of impairment, intangible asset amortization and impairment, bonds payable (사채) issued at discount or premium with effective interest amortization (유효이자율법), convertible bonds (전환사채) and conversion rights, finance and operating lease accounting, revenue recognition criteria, foreign currency monetary asset translation differences (외화환산손익), and accounting changes/prior-period error corrections (회계변경 및 오류수정).

20%

Cost & Managerial Accounting (원가관리회계)

Manufacturing cost flows, job-order costing and overhead rate applications, process costing equivalent units under FIFO (선입선출법) and weighted-average (가중평균법) methods, standard costing variance analysis (direct materials price and quantity variances, direct labor rate and efficiency variances, variable and fixed manufacturing overhead 2-way, 3-way, and 4-way variance models), activity-based costing (ABC) cost driver rates, joint product and byproduct cost allocation (net realizable value method, physical units method, split-off sales value method), Cost-Volume-Profit (CVP) analysis, breakeven points in units and revenue, margin of safety, degree of operating leverage (DOL), and short-term special order decision-making.

30%

Corporate Tax Reconciliation (법인세법 및 세무조정)

Corporate Tax Act (법인세법) foundations: reconciliation framework (세무조정: 결산조정 vs 신고조정), income dispositions (소득처분: 유보, 기타, 배당, 상여, 기타사외유출), gross income inclusions and non-inclusions (익금산입: deemed rental interest on real estate 간주임대료, dividend-received deduction on domestic corporate holdings 수입배당금 익금불산입, gain on debt relief), deductible and non-deductible expenses (손금산입/손금불산입: tax depreciation limits and excess allowances 감가상각비 시부인계산, business entertainment expense limits 접대비/기업업무추진비 한도초과, donation deduction ceilings 기부금 한도초과, bad debt allowances 대손충당금 한도초과), net operating loss carryforwards (이월결손금 공제한도), research and human resources development tax credits, and corporate tax liability computation.

30%

Value Added Tax & Income Tax (부가가치세법 및 소득세법)

Value Added Tax Act (부가가치세법): taxable transaction definitions, deemed supply of goods (간주공급: 자가공급, 개인적공급, 사업상증여, 폐업시 잔존재화), electronic tax invoices (전자세금계산서) issuance timelines and penalties, zero-rating vs tax exemption (영세율 vs 면세), common input tax allocation and final return settlement (공통매입세액 안분계산 및 확정신고 정산), deemed input tax credit on untaxed agricultural products (의제매입세액공제), and bad debt tax credit (대손세액공제). Income Tax Act (소득세법): global income classification, wage and salary income withholding, year-end tax settlement (연말정산: personal basic/additional deductions, pension savings tax credit 연금계좌세액공제, special tax credits for medical, education, donation, and life insurance expenses), and retirement severance income taxation.

Preparing for the Korea Computerized Tax Accounting Level 1 Exam

What You Need to Know

  • Passing score: 70 points or higher out of 100 (Combined Theory 30% and Practical 70%)
  • Assessment: Performance-based assessment
  • Time limit: 90 minutes (Official Exam)
  • Exam / certification fees: KRW 30,000 (KACPTA 접수수수료, all 전산세무회계 grades; 자격증 발급비 KRW 6,000 extra) Official sources

Using Our Practice Resources

  • Work through all 100 available questions
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Korea Computerized Tax Accounting Level 1: Suggested Study Strategy

1Corporate Tax Reconciliation (법인세 세무조정): Focus deeply on income disposition classifications (소득처분: 유보 vs 기타사외유출 vs 상여). Memorize the statutory limits for entertainment expenses (접대비/기업업무추진비) and tax depreciation rules.
2VAT Common Input Tax (공통매입세액): Master the exact mathematical formula for preliminary allocation (예정신고 안분계산: common input tax × exempt supply ratio) and final settlement (확정신고 정산: 6-month aggregate settlement).
3Standard Cost Variance Analysis (표준원가 차이분석): Draw clear 3-column diagrams for materials (AQ×AP, AQ×SP, SQ×SP) and labor (AH×AR, AH×SR, SH×SR) to avoid sign errors when identifying favorable (F) vs unfavorable (U) variances.
4Year-End Income Tax Settlement (연말정산): Memorize the eligibility criteria and percentage limits for medical expense credit (15% above 3% of total salary), education credit (15%), and pension savings credit (12% or 15%).
5Financial Accounting Leases and Bonds: Practice the effective interest amortization table to swiftly compute book value changes, interest expense, and gain/loss on redemption.

Frequently Asked Questions

What is the primary difference between 전산세무 1급 and 전산세무 2급?

The defining distinction is Corporate Tax Accounting and Reconciliation (법인세 세무조정). While Level 2 focuses on VAT, individual income tax withholding, and basic financial accounting, Level 1 requires extensive theoretical and practical mastery of corporate tax adjustments (익금산입, 손금불산입, 감가상각비 시부인, 접대비 한도계산, 소득처분) on the KcLep software.

What is the examination format and passing score for 전산세무 1급?

The exam lasts 90 minutes and is held in designated computer testing rooms. It comprises Theory (30%, 15 multiple-choice questions) and Practical (70%, KcLep case scenarios involving financial statement closing, payroll/year-end tax settlement, VAT reporting, and corporate tax adjustment modules). A combined score of 70 points or higher out of 100 is required to pass.

What accounting standards are tested on the 전산세무 1급 exam?

The examination tests the Korean General Accounting Standards for Non-Public Entities (일반기업회계기준), which governs non-listed Korean enterprises. This differs from K-IFRS (한국채택국제회계기준) tested on the CPA or CTA examinations.

How frequently is the 전산세무 1급 exam administered?

The Korean Association of Certified Public Tax Accountants (KACPTA) administers the exam approximately 6 times per year (typically in February, April, June, August, October, and December) at test centers nationwide across South Korea.

Is practical knowledge of the KcLep (케이렙) software necessary for the theory section?

While the theory questions test formal accounting principles and tax statutes, a thorough understanding of the software's closing and tax reconciliation workflows directly supports answering theory questions accurately, especially regarding settlement adjustments (결산조정) vs report adjustments (신고조정).

Is this question bank an official publication of KACPTA?

No. This question bank is an independent English-language MCQ study adaptation by OpenExamPrep, created to help bilingual accounting professionals, foreign corporate finance specialists, and tax accounting students master South Korean computerized tax accounting principles.