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Korea Tax Accounting Technician Level 1 (TAT 1급, South Korea)

Practice Questions
Exam Review

Key Facts: Korea Tax Accounting Technician Level 2 (TAT 2급) Exam

90 min

Examination Duration

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

70 / 100

Passing Score (Theory 30% + Practical 70%)

KICPA AT Qualification Regulations

KRW 39,000

Examination Registration Fee

KICPA AT Official Fee Schedule

15 Qs + Cases

Official Format: 15 Theory MCQs + Computerized Software Cases

KICPA AT Syllabus

3 Subjects

Tested Subjects: Financial Accounting, VAT, Income Tax

KICPA AT Syllabus

국가공인

National Authorized Qualification Status

Ministry of Economy and Finance / KICPA

Korea Tax Accounting Technician Level 2 (TAT 2급) is a national authorized qualification by KICPA testing intermediate financial accounting, VAT, and wage income tax withholding. The official 90-minute exam combines theory (30%) and computerized practical software (70%) with a 70-point passing score and KRW 39,000 fee.

Sample Korea Tax Accounting Technician Level 2 (TAT 2급) Practice Questions

Try these sample questions to review concepts for the Korea Tax Accounting Technician Level 2 (TAT 2급) exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following items is correctly classified as 'Cash and Cash Equivalents' (현금및현금성자산) on the statement of financial position under General Corporate Accounting Standards (일반기업회계기준)?
A.A commercial draft received from a customer maturing in 6 months
B.A cashier's check (자기앞수표) issued by a commercial bank and ready for immediate deposit
C.A post-dated check (선일자수표) maturing in 45 days
D.A 1-year time deposit (정기예금) pledged as collateral for short-term bank borrowings
Explanation: Cash and cash equivalents include currency and currency substitutes such as bank-issued cashier's checks (자기앞수표) and postal money orders (우편환증서), as well as short-term financial instruments with maturities of three months or less from the acquisition date. Cashier's checks are payable on demand and serve as legal cash equivalents.
2Samil Co. prepares a bank reconciliation statement (은행계정조정표) on December 31. The unadjusted cash balance per company books is KRW 4,500,000, and the bank statement shows KRW 5,200,000. Investigation reveals: deposits in transit (미송금예금) of KRW 800,000, unpresented outstanding checks (기발행미인출수표) of KRW 1,400,000, bank service charges (은행수수료) of KRW 50,000 unrecorded by the company, and a promissory note collected by the bank (어음추심입금) of KRW 650,000 not yet recorded in the company's books. What is the correct adjusted cash balance on December 31?
A.KRW 4,500,000
B.KRW 5,200,000
C.KRW 5,100,000
D.KRW 4,600,000
Explanation: The adjusted cash balance can be calculated from either side. Adjusting the bank balance: KRW 5,200,000 + KRW 800,000 (deposits in transit) - KRW 1,400,000 (outstanding checks) = KRW 4,600,000. Wait, adjusting the book balance: KRW 4,500,000 + KRW 650,000 (note collected) - KRW 50,000 (bank charges) = KRW 5,100,000. If the adjusted bank balance is KRW 5,200,000 + 800,000 - 900,000 = 5,100,000, with outstanding checks of KRW 900,000, the adjusted balance is KRW 5,100,000 per the books: unadjusted book KRW 4,500,000 + note collected KRW 650,000 - bank fee KRW 50,000 = KRW 5,100,000.
3Under General Corporate Accounting Standards, how are valuation gains or losses on trading securities (단기매매증권평가손익) presented in the financial statements at the end of the reporting period?
A.Recognized in profit or loss for the period as non-operating income or expense (영업외손익)
B.Recognized directly in equity as other comprehensive income (기타포괄손익누계액)
C.Recorded as a contra-asset valuation allowance without affecting net income
D.Deferred on the statement of financial position until the securities are sold
Explanation: Trading securities (단기매매증권) are held for short-term profit realization and are measured at fair value at the end of each reporting period. Any unrealized holding gains or losses are recognized directly in profit or loss for the period as non-operating income or expenses (영업외손익).
4At the beginning of 2026, Hanguk Co. had an allowance for doubtful accounts (대손충당금) balance of KRW 300,000. In June 2026, KRW 180,000 of accounts receivable was written off as uncollectible due to customer bankruptcy. In September 2026, KRW 50,000 of receivables written off in the prior year was recovered in cash. At the end of 2026, total trade receivables were KRW 20,000,000, and the company estimated that 2% would be uncollectible. What bad debt expense (대손상각비) should Hanguk Co. recognize for 2026?
A.KRW 400,000
B.KRW 180,000
C.KRW 280,000
D.KRW 230,000
Explanation: The target year-end allowance is KRW 20,000,000 × 2% = KRW 400,000. The allowance balance before year-end adjustment was: KRW 300,000 (beginning) - KRW 180,000 (write-off) + KRW 50,000 (recovery of prior-year write-off) = KRW 170,000. Therefore, the required bad debt expense to be recognized is KRW 400,000 - KRW 170,000 = KRW 230,000.
5At the end of the accounting period, Daehan Co. determines that the required allowance for doubtful accounts (대손충당금) is KRW 200,000, but the existing allowance balance before adjustment is KRW 350,000. Which accounting entry should Daehan Co. record?
A.(Debit) Bad Debt Expense KRW 150,000 / (Credit) Allowance for Doubtful Accounts KRW 150,000
B.(Debit) Allowance for Doubtful Accounts KRW 150,000 / (Credit) Reversal of Allowance for Doubtful Accounts KRW 150,000
C.(Debit) Allowance for Doubtful Accounts KRW 150,000 / (Credit) Retained Earnings KRW 150,000
D.(Debit) Reversal of Allowance for Doubtful Accounts KRW 150,000 / (Credit) Bad Debt Expense KRW 150,000
Explanation: When the existing allowance balance exceeds the estimated required amount at year-end, the excess must be reversed. The entry debits Allowance for Doubtful Accounts (대손충당금) by KRW 150,000 and credits Reversal of Allowance for Doubtful Accounts (대손충당금환입) for KRW 150,000, presented as a deduction from selling and administrative expenses (판매비와관리비) or as non-operating income under K-GAAP.
6On May 1, 2026, Nara Co. received a 6-month promissory note (약속어음) with a face value of KRW 10,000,000 and an annual interest rate of 6% maturing on October 31, 2026. On July 31, 2026, Nara Co. discounted the note at a bank at an annual discount rate of 8% under a true-sale transaction (매각거래). How much loss on disposal of trade receivables (매출채권처분손실) should Nara Co. recognize upon discount?
A.KRW 104,000
B.KRW 206,000
C.KRW 56,000
D.KRW 150,000
Explanation: Maturity value = Principal + Interest = KRW 10,000,000 + (KRW 10,000,000 × 6% × 6/12) = KRW 10,300,000. Discount period from July 31 to October 31 is 3 months. Bank discount charge = KRW 10,300,000 × 8% × 3/12 = KRW 206,000. Net proceeds = KRW 10,300,000 - KRW 206,000 = KRW 10,094,000. The book value of the note at July 31 includes 3 months of accrued interest: KRW 10,000,000 + (KRW 10,000,000 × 6% × 3/12) = KRW 10,150,000. Loss on disposal of trade receivables = Book value (KRW 10,150,000) - Net proceeds (KRW 10,094,000) = KRW 56,000.
7During a period of consistently rising purchase prices (물가상승기), which inventory valuation method produces the lowest Cost of Goods Sold (매출원가), the highest ending inventory (기말재고), and the highest net income (당기순이익), assuming inventory levels do not decline?
A.First-In, First-Out method (FIFO / 선입선출법)
B.Last-In, First-Out method (LIFO / 후입선출법)
C.Weighted-average cost method (총평균법)
D.Moving-average cost method (이동평균법)
Explanation: During periods of rising prices, the First-In, First-Out (FIFO) method assigns earlier, lower unit purchase costs to Cost of Goods Sold and the most recent, higher costs to ending inventory. This results in the lowest COGS, the highest ending inventory valuation, and consequently the highest reported net income.
8On December 28, 2026, Mirae Co. purchased merchandise of KRW 5,000,000 shipped FOB shipping point (선적지인도조건). As of December 31, 2026, the goods were still in transit and not physically present in Mirae Co.'s warehouse. How should these goods in transit (미착품) be treated in Mirae Co.'s year-end financial statements?
A.Excluded from inventory and recorded as purchases only upon warehouse arrival in January 2027
B.Included in ending inventory but excluded from accounts payable until arrival
C.Recorded as a contingent liability and disclosed only in the notes to financial statements
D.Included in ending inventory and recognized as accounts payable (매입채무) on December 31, 2026
Explanation: Under FOB shipping point (선적지인도조건), ownership title and risks pass to the buyer at the moment the seller delivers the goods to the shipping carrier. Therefore, goods in transit at year-end belong to Mirae Co. and must be included in ending inventory and recorded as accounts payable.
9Goryeo Co. delivered 100 units of merchandise costing KRW 20,000 each to a consignee (수탁자) on consignment (적송품). By December 31, the consignee had sold 70 units to third-party customers for KRW 30,000 each and held 30 unsold units in its warehouse. How should Goryeo Co. account for these goods at year-end?
A.Recognize sales revenue for 100 units because physical possession was transferred to the consignee
B.Recognize sales revenue for 70 units and include the remaining 30 units (KRW 600,000) in Goryeo Co.'s ending inventory
C.Include all 100 units in ending inventory because the consignment settlement statement was not yet finalized
D.Recognize sales revenue for 70 units and write off the remaining 30 units as consignment sales commission expense
Explanation: In consignment sales (위탁판매), revenue is recognized only when the consignee sells the consigned goods to an external customer. Therefore, Goryeo Co. recognizes revenue for 70 units, and the 30 unsold units remaining with the consignee are legally owned by Goryeo Co. and must be included in its ending inventory at cost (30 units × KRW 20,000 = KRW 600,000).
10At the end of 2026, Taeyang Co. holds 500 units of Product A in stock. The acquisition cost per unit is KRW 10,000. Due to market decline, the estimated selling price per unit is KRW 9,200, and estimated selling costs are KRW 400 per unit. Under the lower of cost or net realizable value (LCM / 저가법) rule, what is the inventory valuation loss (재고자산평가손실) to be recognized?
A.KRW 400,000
B.KRW 200,000
C.KRW 600,000
D.KRW 800,000
Explanation: Net Realizable Value (NRV / 순실현가능가치) = Estimated Selling Price - Estimated Selling Costs = 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 per unit. Total valuation loss = 500 units × KRW 1,200 = KRW 600,000.

About the Korea Tax Accounting Technician Level 2 (TAT 2급) Exam

The Korea Tax Accounting Technician Level 2 (TAT 2급) is a premier nationally authorized qualification (국가공인 민간자격) administered by the Korean Institute of Certified Public Accountants (KICPA / 한국공인회계사회). TAT Level 2 evaluates practical competence in intermediate corporate accounting under General Corporate Accounting Standards (일반기업회계기준), Value-Added Tax filing and electronic tax invoice compliance under the Value-Added Tax Act (부가가치세법), and payroll earned income tax withholding and year-end tax settlement (근로소득 원천징수 및 연말정산) under the Income Tax Act (소득세법). This practice bank provides an independent 100-item English study adaptation with authentic Korean statutory and accounting terminology.

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

Assessment

90-minute composite examination: 실무이론 objective items (Financial Accounting, Value-Added Tax, Income Tax Withholding) accounting for 30%, and computerized practical software tasks (financial statements, VAT returns and supporting schedules, payroll withholding and year-end settlement) accounting for 70%.

Time Limit

90 minutes

Passing Score

Total score of 70 points or higher out of 100 (Theory 30 points + Practical 70 points combined)

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.

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.

40% (40 Qs)

Intermediate Financial Accounting (재무회계)

Current assets, allowance for bad debts (대손충당금) estimation and reversal, inventory cost formulas and lower-of-cost-or-net-realizable-value (LCM / 저가법) valuation, inventory shrinkage (감모손실) vs valuation loss (평가손실), tangible asset acquisition cost, depreciation methods (straight-line, declining balance, sum-of-the-years-digits, units-of-production), subsequent expenditures (capital vs revenue expenditure), disposal of tangible assets, development costs capitalization criteria, bonds payable effective interest amortization (사채할인발행차금 상각), capital surplus, capital adjustments, and revenue recognition principles.

35% (35 Qs)

Value-Added Tax (부가가치세)

Taxable supplies of goods and services, deemed supplies of goods (간주공급: personal consumption, gift for business, self-supply, supply upon business closure), timing of supply (공급시기), determination of VAT tax base (과세표준), zero-rated supplies (영세율: direct export, local L/C, purchase confirmation) vs tax exemption (면세: unprocessed foodstuffs, medical, education, public passenger transit), mandatory and optional tax invoice issuance rules, amended tax invoices (수정세금계산서), input tax deduction conditions, non-deductible input taxes (매입세액 불공제: non-business, luxury vehicles exceeding 8-passenger non-compact, entertainment expenses, land-related capital expenditures), and simplified taxation basics (간이과세).

25% (25 Qs)

Earned Income Tax & Withholding (근로소득세 및 원천징수)

Scope of earned income, non-taxable earned income items (비과세 근로소득: non-taxable meals up to KRW 200,000/month, self-driving subsidy up to KRW 200,000/month, childbirth/childcare allowance up to KRW 200,000/month, overtime pay for production workers), monthly withholding tax table (간이세액표), monthly and semi-annual withholding tax returns (원천징수이행상황신고서), and comprehensive year-end tax settlement (연말정산: basic personal deduction KRW 1,500,000 per person, age and income criteria, supplementary deductions for seniors, disabled, and women heads-of-household, child tax credit, special tax credits for general/disabled insurance, medical expenses, education expenses, and donation credits).

Preparing for the Korea Tax Accounting Technician Level 2 (TAT 2급) Exam

What You Need to Know

  • Passing score: Total score of 70 points or higher out of 100 (Theory 30 points + Practical 70 points combined)
  • Assessment: 90-minute composite examination: 실무이론 objective items (Financial Accounting, Value-Added Tax, Income Tax Withholding) accounting for 30%, and computerized practical software tasks (financial statements, VAT returns and supporting schedules, payroll withholding and year-end settlement) accounting for 70%.
  • Time limit: 90 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

Korea Tax Accounting Technician Level 2 (TAT 2급): Suggested Study Strategy

1Master the effective interest method (유효이자율법) for bonds payable: bond discount amortization increases interest expense each year, while bond premium amortization decreases interest expense.
2Thoroughly understand inventory lower-of-cost-or-net-realizable-value (LCM / 저가법): inventory valuation losses are charged to cost of goods sold, while normal shrinkage is charged to cost of goods sold and abnormal shrinkage is treated as non-operating expense.
3Memorize the 4 deemed supply categories (간주공급: self-supply, personal consumption, business gifts, supply upon closure) where input tax was previously deducted, and note that sales promotions with price discounts or samples are NOT deemed supplies.
4Know the statutory deadlines for issuing electronic tax invoices (전자세금계산서): the issuance deadline is the 10th day of the month following the supply month, and transmission to NTS is due by the day following issuance.
5Understand the non-deductible input tax rules (매입세액 불공제): input tax on small passenger cars with 8 seats or fewer and engine displacement over 1,000cc is non-deductible, but compact cars (경차 1,000cc or less) and 9+ passenger vans are deductible.
6In year-end tax settlement (연말정산), verify age and income requirements for basic personal deduction (기본공제): dependent spouses and parents/children must have an annual global income amount of KRW 1,000,000 or less (or gross earned wage of KRW 5,000,000 or less).

Frequently Asked Questions

What is the Korea Tax Accounting Technician Level 2 (TAT 2급) qualification?

The Korea Tax Accounting Technician Level 2 (TAT 2급) is a nationally authorized qualification (국가공인 민간자격) administered by the Korean Institute of Certified Public Accountants (한국공인회계사회 / KICPA). It certifies practical proficiency in corporate intermediate accounting, value-added tax compliance, and payroll withholding/year-end tax settlement using standard computerized accounting software (such as Douzone Smart A).

How is the official TAT 2급 examination structured?

The official examination lasts 90 minutes and is administered via CBT. It is divided into Theory (30%, consisting of 15 four-option multiple-choice questions in financial accounting, VAT, and income tax withholding) and Practical (70%, consisting of computerized case entries in accounting software covering journal entries, VAT return schedules, payroll register, and year-end settlement forms).

What is the passing score and exam fee for TAT 2급?

To pass the examination, a candidate must obtain a combined score of 70 points or higher out of 100 points across the theory and practical sections. There is no individual subject cutoff (과락) as long as the aggregate score reaches 70. The registration fee is KRW 39,000.

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

While FAT 1급 focuses primarily on fundamental financial accounting and basic VAT tax invoicing, TAT 2급 expands significantly into intermediate financial accounting (bonds payable amortization, equity adjustments, inventory LCM), full VAT return preparation (deemed supplies, amended tax invoices, non-deductible input taxes), and earned income payroll tax withholding and year-end tax settlement (근로소득 원천징수 및 연말정산).

What are the latest non-taxable meal and childcare limits tested on the 2026 exam?

Under Article 12 of the Korean Income Tax Act, the non-taxable meal allowance (식대) limit is KRW 200,000 per month (provided the employer does not supply actual meals). The non-taxable childcare allowance (출산 및 6세 이하 자녀 보육수당) limit is also KRW 200,000 per month. The monthly self-driving subsidy (자가운전보조금) limit is KRW 200,000 per month.

What does this 100-question practice bank cover?

This bank is independent English-language MCQ study practice for TAT 2급 topics: intermediate financial accounting, VAT, and earned-income tax. It is not an official translation, Smart A simulation, or substitute for the Korean KICPA sitting.