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Korea Financial Accounting Technician Level 2 (FAT 2급, South Korea)

Practice Questions
Exam Review

Key Facts: Financial Accounting Technician Level 1 Exam

60 min

Exam duration (Theory + Practical combined)

KICPA AT Examination Center (at.kicpa.or.kr)

70 / 100

Minimum passing score

KICPA AT qualification standards

KRW 39,000

Official exam registration fee

KICPA AT registration portal, verified 2026-09-20

30% / 70%

Theory (실무이론 30%) vs Practical (실무수행 70%) score weighting

KICPA FAT 1급 exam specifications

FAT 1급 is a KICPA-administered national-accredited qualification certifying SME financial accounting and VAT computerized operations. The official 60-minute CBT exam has a 30-point 실무이론 section and practical ERP tasks (70 points) with a 70/100 pass mark and a KRW 39,000 fee. OpenExamPrep provides an independent 100-question English study bank.

Sample Financial Accounting Technician Level 1 Practice Questions

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

1Which qualitative characteristic of accounting information under General Corporate Accounting Standards (일반기업회계기준) ensures that financial reports are free from material bias and can be relied upon by users to represent faithfully what they purport to represent?
A.Comparability (비교가능성)
B.Relevance (목적적합성)
C.Reliability (신뢰성)
D.Understandability (이해가능성)
Explanation: Reliability (신뢰성) requires that financial information is verifiable, faithfully represented (표현의 충실성), and neutral (중립성). Relevance (목적적합성) emphasizes predictive and feedback value along with timeliness.
2Which of the following is NOT one of the five mandatory primary financial statements prescribed by Korean GAAP (일반기업회계기준 제2장)?
A.Income Statement (손익계산서)
B.Statement of Cash Flows (현금흐름표)
C.Statement of Financial Position (재무상태표)
D.Trial Balance (합계잔액시산표)
Explanation: Under Korean GAAP (일반기업회계기준), the five primary financial statements are the Statement of Financial Position (재무상태표), Income Statement (손익계산서), Statement of Cash Flows (현금흐름표), Statement of Changes in Equity (자본변동표), and Notes (주석). A Trial Balance (시산표) is an internal verification tool, not a statutory financial statement.
3An entity pays KRW 1,200,000 on October 1, 2026, for a 1-year fire insurance policy covering October 1, 2026 through September 30, 2027, recording the entire amount as Insurance Expense (보험료). What is the necessary adjusting entry at the December 31, 2026 fiscal year-end under the accrual basis (발생주의)?
A.Debit: Prepaid Expenses (선급비용) KRW 900,000; Credit: Insurance Expense (보험료) KRW 900,000
B.Debit: Prepaid Expenses (선급비용) KRW 300,000; Credit: Insurance Expense (보험료) KRW 300,000
C.Debit: Insurance Expense (보험료) KRW 900,000; Credit: Cash (현금) KRW 900,000
D.Debit: Insurance Expense (보험료) KRW 300,000; Credit: Prepaid Expenses (선급비용) KRW 300,000
Explanation: Three months elapsed in 2026 (KRW 300,000 expense), leaving nine months (KRW 900,000) prepaid for 2027. Since the entire KRW 1,200,000 was debited to expense on October 1, the unexpired portion of KRW 900,000 must be credited to Insurance Expense and debited to Prepaid Expenses (선급비용).
4In the accounting cycle (회계순환과정), which sequence accurately describes the chronological order of accounting procedures?
A.Business Transaction → Financial Statements (재무제표) → Journal Entry (분개) → Trial Balance (시산표) → Closing Entries (마감)
B.Business Transaction → Journal Entry (분개) → Posting to Ledger (전기) → Trial Balance (시산표) → Financial Statements (재무제표)
C.Business Transaction → Posting to Ledger (전기) → Journal Entry (분개) → Financial Statements (재무제표) → Closing Entries (마감)
D.Business Transaction → Trial Balance (시산표) → Journal Entry (분개) → Posting to Ledger (전기) → Financial Statements (재무제표)
Explanation: Transactions are first recorded in the journal through journalizing (분개), then posted to ledger accounts (전기). At period-end, a trial balance (시산표) is compiled, adjusting entries are posted, closing entries are completed, and financial statements are prepared.
5Which accounting principle requires that expenses incurred in generating revenue must be recognized in the same accounting period as the related revenue?
A.Conservatism Principle (보수주의)
B.Historical Cost Principle (역사적 원가주의)
C.Matching Principle (수익·비용 대응의 원칙)
D.Revenue Realization Principle (수익실현의 원칙)
Explanation: The Matching Principle (수익·비용 대응의 원칙) dictates that expenses should be recognized in the period in which the associated economic benefits (revenues) are earned. This is accomplished via direct cause-and-effect matching, systematic allocation, or immediate expensing.
6Which of the following errors will cause the total debits and total credits of a Trial Balance (시산표) to be unequal?
A.A debit entry of KRW 500,000 was posted to Cash, but the corresponding credit was omitted entirely
B.A debit of KRW 300,000 to Accounts Payable was mistakenly debited to Accounts Receivable
C.A journal entry was posted twice in its entirety to both debit and credit accounts
D.An entire transaction was omitted from both the journal and the ledger
Explanation: A trial balance detects mathematical inequality between total debits and total credits. Omitting a credit while posting a debit results in debits exceeding credits, disrupting balance. The other errors preserve debit-credit equality and remain undetected by a trial balance.
7Under Korean GAAP, how are assets classified on the Statement of Financial Position (재무상태표) based on liquidity (유동성배열법)?
A.Assets are ordered strictly by alphabetical order of account titles
B.Current Assets (유동자산) first, ordered by Quick Assets (당좌자산) and Inventory Assets (재고자산), followed by Non-current Assets (비유동자산)
C.Current Assets ordered by Inventory Assets first, followed by Quick Assets and Investment Assets
D.Non-current Assets first, followed by Current Assets ordered by Inventory and then Quick Assets
Explanation: Under Korean GAAP, the Statement of Financial Position applies the principle of liquidity order (유동성배열법). Assets are ordered from most liquid to least liquid: Current Assets (Quick Assets, then Inventories), followed by Non-current Assets (Investments, Tangible, Intangible, and Other Non-current Assets).
8On December 31, 2026, an entity holds a 1-year certificate of deposit (정기예금) of KRW 10,000,000 bearing 6% annual interest, purchased on September 1, 2026. Interest is receivable at maturity on August 31, 2027. What year-end adjusting entry must be made?
A.No entry is required until cash interest is received on August 31, 2027
B.Debit: Interest Revenue (이자수익) KRW 200,000; Credit: Accrued Revenue (미수수익) KRW 200,000
C.Debit: Accrued Revenue (미수수익) KRW 600,000; Credit: Interest Revenue (이자수익) KRW 600,000
D.Debit: Accrued Revenue (미수수익) KRW 200,000; Credit: Interest Revenue (이자수익) KRW 200,000
Explanation: Interest accrued for 4 months (September through December): KRW 10,000,000 × 6% × (4 / 12) = KRW 200,000. Under the accrual basis, this earned revenue must be recognized in 2026 by debiting Accrued Revenue (미수수익) and crediting Interest Revenue (이자수익).
9At the close of an accounting period, which of the following accounts is closed to the Income Summary (손익) account rather than carried forward to the next period?
A.Allowance for Bad Debts (대손충당금)
B.Prepaid Expenses (선급비용)
C.Salaries Expense (급여)
D.Unearned Revenue (선수수익)
Explanation: Nominal accounts (temporary accounts) such as Revenues and Expenses (e.g., Salaries Expense) are closed to the Income Summary (손익) account at year-end and reset to zero. Real accounts (assets, liabilities, equity) are carried forward to the subsequent fiscal period.
10Which element of the Income Statement (손익계산서) under Korean GAAP is calculated by subtracting Selling and Administrative Expenses (판매비와관리비) from Gross Profit (매출총이익)?
A.Gross Revenue (총매출액)
B.Income Before Income Taxes (법인세비용차감전순손익)
C.Net Income (당기순이익)
D.Operating Income (영업이익)
Explanation: Under Korean GAAP, the multi-step Income Statement follows: Net Sales − Cost of Goods Sold = Gross Profit (매출총이익); Gross Profit − Selling and Administrative Expenses = Operating Income (영업이익); Operating Income + Non-operating Income − Non-operating Expenses = Income Before Taxes.

About the Financial Accounting Technician Level 1 Exam

Financial Accounting Technician Level 1 (FAT 1급) is South Korea's premier national-accredited private qualification (국가공인 민간자격) for corporate accounting practice, administered by the Korean Institute of Certified Public Accountants (한국공인회계사회). The credential tests an individual's capability to execute financial accounting operations for small-to-medium enterprises (SMEs) using standard computerized accounting ERP software (더존 SmartA(iPlus), the program named by KICPA for the AT practical). The curriculum encompasses General Corporate Accounting Standards (일반기업회계기준 / K-GAAP), covering current assets, inventory costing, non-current asset depreciation, corporate equity transactions, and the Value Added Tax Act (부가가치세법). OpenExamPrep provides an independent English-language MCQ practice adaptation for candidates preparing for FAT 1급.

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

Assessment

The official test combines Theory (실무이론, 30 points: 재무회계 and 부가가치세) and Practical (70 points: accounting software operations, journal entries, tax invoices, and settlement adjustments) in a 60-minute computer-based sitting. Passing score is 70/100. OpenExamPrep adapts this into 70 financial accounting theory/practical scenario items and 30 VAT items.

Time Limit

60 minutes

Passing Score

70 points out of 100

Exam / Certification Fees

KRW 39,000 per grade (KICPA AT 응시료, at.kicpa.or.kr)

Exam sponsor website

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

Official sources

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.

70%

Financial Accounting Theory & Practical Scenarios (재무회계)

Accounting cycle, double-entry bookkeeping, cash equivalents, allowance for bad debts (대손충당금), inventory valuation (FIFO, weighted-average, LCM/재고자산평가손실), tangible/intangible assets, depreciation, bonds payable, and corporate equity.

30%

Value Added Tax Basics (부가가치세)

VAT fundamentals, taxable supplies of goods and services, deemed supply (간주공급), tax invoice issuance and transmission rules, zero-rated supplies vs VAT exemptions, input tax deductions, and non-deductible input tax items (매입세액 불공제).

Preparing for the Financial Accounting Technician Level 1 Exam

What You Need to Know

  • Passing score: 70 points out of 100
  • Assessment: The official test combines Theory (실무이론, 30 points: 재무회계 and 부가가치세) and Practical (70 points: accounting software operations, journal entries, tax invoices, and settlement adjustments) in a 60-minute computer-based sitting. Passing score is 70/100. OpenExamPrep adapts this into 70 financial accounting theory/practical scenario items and 30 VAT items.
  • Time limit: 60 minutes
  • Exam / certification fees: KRW 39,000 per grade (KICPA AT 응시료, at.kicpa.or.kr) Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

Financial Accounting Technician Level 1: Suggested Study Strategy

1Master the journal entries for bad debts (대손상각비 and 대손충당금 환입) under the allowance method, paying close attention to pre-existing credit balances.
2Understand the difference between capital expenditures (자본적 지출, capitalizing into asset cost) and revenue expenditures (수익적 지출, expensing as repair/maintenance).
3Memorize the key non-deductible input tax items (매입세액 불공제) under the VAT Act, particularly non-business expenses, entertainment expenses, and passenger cars with engine displacement exceeding 1,000cc.
4Practice inventory cost flow calculations (FIFO vs weighted average) and lower-of-cost-or-net-realizable-value (LCM) inventory valuation write-downs.

Frequently Asked Questions

What is the official structure of the FAT 1급 examination?

The FAT 1급 exam is a single 60-minute session comprising Theory (실무이론, 30 points) and Practical (실무수행, 70 points, 더존 SmartA(iPlus) transaction processing). The total score is 100 points, and a candidate must achieve at least 70 points to pass.

Which accounting software is used in the official FAT 1급 practical exam?

The practical examination uses KICPA's official AT practical program, 더존 SmartA(iPlus). Candidates enter real business slips, issue electronic tax invoices, and perform year-end settlement adjustments.

What is the registration fee and how often is the exam held?

The exam registration fee is KRW 39,000 (verified on at.kicpa.or.kr for 2026). KICPA administers the AT series exams approximately six to eight times per year at test centers nationwide.

Is this practice bank an official translation of the KICPA test?

No. The official KICPA examination is conducted in Korean using accounting software. This OpenExamPrep bank is an independent English-language MCQ study adaptation designed to build theoretical knowledge and scenario comprehension. It is not an official translation or software simulator.

What is the difference between FAT 1급 and TAT 2급?

FAT 1급 focuses comprehensively on financial accounting and basic VAT. TAT 2급 builds upon this by adding corporate income tax withholding, payroll management, and more advanced VAT compliance, making it the natural next step in the KICPA qualification path.