Free Practice Questions for Myanmar CPA Part I

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Myanmar CPA Part II (MAC)

Practice Questions100 questions

Exam Review

Key Facts: Myanmar CPA Part I Exam

6 Papers

Total written subject examination papers in CPA Part I

Myanmar Accountancy Council syllabus structure

50 points

Minimum qualifying mark required in each subject paper

Myanmar Accountancy Council examination regulations

5 sittings

Maximum consecutive examinations for passing both modules

Myanmar Accountancy Council examination rules

The MAC CPA Part I Examination comprises 6 written subject papers across two modules. Candidates must score at least 50 points in every subject; a failed subject requires re-sitting its module, and both modules must be completed within 5 consecutive examinations.

Sample Myanmar CPA Part I Practice Questions

Try these sample questions to review concepts for the Myanmar CPA Part I exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Conceptual Framework for Financial Reporting and Myanmar Financial Reporting Standards (MFRS), what are the two fundamental qualitative characteristics that financial information must possess to be useful to primary users?

A.Relevance and Faithful Representation

B.Comparability and Verifiability

C.Timeliness and Understandability

D.Prudence and Materiality

Explanation: According to the Conceptual Framework, Relevance and Faithful Representation are the two fundamental qualitative characteristics of useful financial information. Information must be capable of making a difference in user decisions (relevance) and must accurately depict what it purports to represent (faithful representation). Comparability, verifiability, timeliness, and understandability are enhancing qualitative characteristics.

2A trading enterprise in Yangon purchases inventory on 1 October 2025 with an invoice price of 12,000,000 MMK, subject to a trade discount of 5% and settlement terms of 2/10, net 30. Freight-in costs paid by the buyer are 400,000 MMK, and import tariffs amount to 600,000 MMK. The enterprise pays within 10 days to take the settlement discount. Under IAS 2 / MFRS 2, at what initial cost should the inventory be recognized?

A.12,400,000 MMK

B.12,172,000 MMK

C.12,400,000 MMK less trade discount only = 12,400,000 MMK

D.11,172,000 MMK

Explanation: Under IAS 2 / MFRS 2, inventory cost includes purchase price (net of trade discounts), import duties, transport, handling, and other directly attributable costs. Trade discount of 5% reduces 12,000,000 MMK by 600,000 MMK to 11,400,000 MMK. Under modern standard practice, settlement discounts taken (2% of 11,400,000 MMK = 228,000 MMK) reduce purchase cost, yielding net purchase price of 11,172,000 MMK. Adding freight-in (400,000 MMK) and import duties (600,000 MMK) yields total cost of 12,172,000 MMK.

3A Myanmar manufacturing company acquired specialized production machinery on 1 January 2023 for 50,000,000 MMK with an estimated useful life of 5 years and an estimated residual value of 5,000,000 MMK. The company applies the straight-line depreciation method. On 1 January 2025, after two full years of use, the company reassesses the machinery's remaining useful life to be 4 more years (total life 6 years) and reduces the estimated residual value to 2,000,000 MMK. What is the depreciation expense for the year ended 31 December 2025 under IAS 16 and IAS 8?

A.7,500,000 MMK

B.8,000,000 MMK

C.9,000,000 MMK

D.7,000,000 MMK

Explanation: Original annual depreciation = (50,000,000 - 5,000,000) / 5 = 9,000,000 MMK per year. Accumulated depreciation at 31 December 2024 (2 years) = 18,000,000 MMK. Carrying amount at 1 January 2025 = 50,000,000 - 18,000,000 = 32,000,000 MMK. Under IAS 8, changes in accounting estimates (useful life and residual value) are accounted for prospectively. Revised annual depreciation for 2025 = (Carrying amount 32,000,000 - Revised residual 2,000,000) / Remaining useful life 4 = 30,000,000 / 4 = 7,500,000 MMK.

4Under IAS 38 (Intangible Assets), which of the following internal expenditures incurred by an enterprise may be recognized as an intangible asset on the statement of financial position?

A.Expenditure on internal research activities aimed at discovering new chemical compounds

B.Internally generated customer lists and publishing titles

C.Development costs that meet all technical feasibility, intent, commercial viability, and reliable measurement criteria

D.Training costs for staff members who will operate newly developed intellectual property

Explanation: IAS 38 strictly prohibits the capitalization of research costs, internally generated brands, mastheads, customer lists, and staff training expenditures; all must be expensed as incurred. An internally generated intangible asset arising from the development phase is capitalized only when the entity can demonstrate all six criteria: technical feasibility, intention to complete, ability to use or sell, generation of probable future economic benefits, availability of adequate resources, and reliable expenditure measurement.

5On 31 December 2025, a chemical manufacturing company operating in an industrial zone in Yangon faces an environmental claim. Legal counsel advises that there is a 75% probability that the company will be found liable and required to pay 40,000,000 MMK in remediation costs within one year. There is a 25% chance of successful defense with zero payment. The risk-adjusted discount rate is negligible. Under IAS 37 (Provisions, Contingent Liabilities and Contingent Assets), how should the company treat this matter?

A.Recognize a provision of 40,000,000 MMK in the statement of financial position

B.Recognize a provision of 30,000,000 MMK based on expected value (75% of 40,000,000 MMK)

C.Disclose a contingent liability in the notes without financial statement provision recognition

D.Neither recognize a provision nor disclose in notes because final court adjudication is pending

Explanation: Under IAS 37, a provision is recognized when there is a present legal or constructive obligation from a past event, an outflow of economic benefits is probable (more likely than not, i.e., >50%), and a reliable estimate can be made. Here, liability is probable (75%). For a single obligation (a discrete legal lawsuit), the most likely outcome (the individual most likely outcome of 40,000,000 MMK) is generally the best estimate, not the expected value (which is used for large populations of items like product warranties).

6A telecommunications company in Mandalay enters into a contract on 1 January 2025 to sell a customer a smartphone and provide a 12-month data service package for an upfront total price of 600,000 MMK. The standalone selling price of the smartphone is 480,000 MMK and the standalone selling price of the 12-month data plan is 240,000 MMK. The phone is delivered immediately on 1 January 2025. Under IFRS 15 / MFRS 15, how much revenue should be recognized on 1 January 2025 upon delivery of the phone?

A.480,000 MMK

B.400,000 MMK

C.600,000 MMK

D.360,000 MMK

Explanation: Under IFRS 15's five-step model, the transaction price must be allocated to distinct performance obligations based on relative standalone selling prices. Total standalone selling prices = 480,000 MMK + 240,000 MMK = 720,000 MMK. The smartphone represents 480,000 / 720,000 = 2/3 (66.67%) of total standalone value. The allocated transaction price to the smartphone is (480,000 / 720,000) * 600,000 MMK = 400,000 MMK. Because control of the phone transfers on 1 January 2025, 400,000 MMK is recognized as revenue on that date.

7A lessee enters into a 3-year commercial warehouse lease in Yangon on 1 January 2025. Lease payments of 10,000,000 MMK are payable annually in arrears on 31 December each year. The interest rate implicit in the lease cannot be readily determined; the lessee's incremental borrowing rate is 10% per annum. The present value factor of an ordinary annuity of 1 MMK at 10% for 3 years is 2.4869. The lessee incurs initial direct legal costs of 500,000 MMK. Under IFRS 16 / MFRS 16, what is the initial carrying amount of the right-of-use (ROU) asset at 1 January 2025?

A.24,869,000 MMK

B.25,369,000 MMK

C.30,500,000 MMK

D.24,369,000 MMK

Explanation: Under IFRS 16, the initial lease liability equals the present value of lease payments: 10,000,000 MMK * 2.4869 = 24,869,000 MMK. The right-of-use (ROU) asset is measured at the initial lease liability amount plus any initial direct costs incurred by the lessee (500,000 MMK) and lease payments made at or before commencement, less lease incentives received. Therefore, Initial ROU Asset = 24,869,000 MMK + 500,000 MMK = 25,369,000 MMK.

8During the audit of a commercial firm in Nay Pyi Taw, the accountant prepares a bank reconciliation at 31 December 2025. The cash book shows a debit balance of 15,200,000 MMK. Unpresented cheques total 3,400,000 MMK, uncredited lodgements total 2,100,000 MMK, direct bank charges of 150,000 MMK appear on the bank statement but not in the cash book, and a direct customer transfer of 1,800,000 MMK was credited by the bank but not recorded in the cash book. What is the corrected cash book balance to be reported on the statement of financial position?

A.16,850,000 MMK

B.13,900,000 MMK

C.15,200,000 MMK

D.18,150,000 MMK

Explanation: The corrected cash book balance adjusts for items already processed by the bank but not yet entered into the entity's ledger cash book: Initial Cash Book balance = 15,200,000 MMK + Customer direct transfer (1,800,000 MMK) - Bank charges (150,000 MMK) = 16,850,000 MMK. Unpresented cheques and uncredited lodgements are timing differences that explain the discrepancy between the corrected cash book balance and the bank statement balance, but they do not alter the internal cash book balance.

9Under IAS 7 (Statement of Cash Flows), an enterprise operating under MFRS prepares its cash flows from operating activities using the indirect method. For the year ended 31 December 2025, profit before tax was 85,000,000 MMK. The records show depreciation expense of 12,000,000 MMK, gain on sale of equipment of 3,000,000 MMK, an increase in trade receivables of 5,000,000 MMK, an increase in inventory of 4,000,000 MMK, an increase in trade payables of 6,000,000 MMK, and income taxes paid of 14,000,000 MMK. What is the net cash flow from operating activities?

A.77,000,000 MMK

B.91,000,000 MMK

C.74,000,000 MMK

D.80,000,000 MMK

Explanation: Operating cash flows under indirect method: Profit before tax = 85,000,000 MMK. Adjust for non-cash and non-operating items: + Depreciation (12,000,000 MMK) - Gain on disposal (3,000,000 MMK) = Operating profit before working capital changes of 94,000,000 MMK. Working capital adjustments: - Increase in trade receivables (5,000,000 MMK) - Increase in inventory (4,000,000 MMK) + Increase in trade payables (6,000,000 MMK) = Cash generated from operations of 91,000,000 MMK. Less income tax paid (14,000,000 MMK) = Net cash from operating activities of 77,000,000 MMK.

10A public company in Myanmar has credit sales for 2025 of 180,000,000 MMK and cost of goods sold of 120,000,000 MMK. At 1 January 2025, trade receivables were 26,000,000 MMK and inventory was 18,000,000 MMK. At 31 December 2025, trade receivables are 34,000,000 MMK and inventory is 22,000,000 MMK. Assuming a 360-day year, what is the entity's inventory turnover period (in days) and receivables collection period (in days)?

A.Inventory turnover: 60 days; Receivables collection: 60 days

B.Inventory turnover: 40 days; Receivables collection: 60 days

C.Inventory turnover: 60 days; Receivables collection: 40 days

D.Inventory turnover: 66 days; Receivables collection: 54 days

Explanation: Average inventory = (18,000,000 + 22,000,000) / 2 = 20,000,000 MMK. Inventory turnover period = (Average Inventory / COGS) * 360 = (20,000,000 / 120,000,000) * 360 = 60 days. Average receivables = (26,000,000 + 34,000,000) / 2 = 30,000,000 MMK. Receivables collection period = (Average Receivables / Credit Sales) * 360 = (30,000,000 / 180,000,000) * 360 = 60 days.

About the Myanmar CPA Part I Exam

The Myanmar Certified Public Accountant (CPA) Part I Examination is a professional assessment administered by the Myanmar Accountancy Council under the Myanmar Accountancy Council Law 2015. It tests financial accounting and reporting, auditing, performance management, commercial law, business environment, and financial regulations. Four papers are taught and answered in English, while Commercial Law and Financial and Services Regulations are not. This is independent English-language MCQ study practice, not an official translation, examination paper, or simulation of the official written-response format.

Exam sponsor: Myanmar Accountancy Council (MAC / မြန်မာနိုင်ငံစာရင်းကောင်စီ), Union Auditor General Office. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

6 written papers across Module 1 and Module 2: Professional Financial Accounting & External Reporting I, Practical Auditing I, Performance and Financial Management, Business Environment and Management, Commercial and Industrial Laws, and Financial and Services Regulations.

Time Limit

Published in sitting-specific timetables; no stable duration is stated in the standing official exam rules

Passing Score

50 points in each of the 6 subject papers

Exam / Certification Fees

Exam and application fees apply; current amounts are not published in the standing official exam rules.

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.

1 of 6 papers

Professional Financial Accounting & External Reporting I

Myanmar Financial Reporting Standards (MFRS/IFRS), asset recognition, revenue measurement, and general purpose financial statements.

1 of 6 papers

Practical Auditing I

Myanmar Standards on Auditing (MSA/ISA), audit planning, internal controls, risk assessment, substantive procedures, and audit opinions.

1 of 6 papers

Performance and Financial Management

Cost classification, job/process costing, CVP analysis, budgeting, standard costing, and operational variance analysis.

1 of 6 papers

Business Environment and Management

Economic fundamentals, inflation, fiscal and monetary policy, business organizational forms, ethics, and governance.

1 of 6 papers

Commercial and Industrial Laws

Myanmar Companies Law 2017 corporate administration, Contract Act 1872, Sale of Goods Act, and partnership regulations.

1 of 6 papers

Financial and Services Regulations

Myanmar Accountancy Council Law 2015, Auditor General legislation, Central Bank directives, and AML/CFT compliance obligations.

Preparing for the Myanmar CPA Part I Exam

What You Need to Know

Passing score: 50 points in each of the 6 subject papers
Assessment: 6 written papers across Module 1 and Module 2: Professional Financial Accounting & External Reporting I, Practical Auditing I, Performance and Financial Management, Business Environment and Management, Commercial and Industrial Laws, and Financial and Services Regulations.
Time limit: Published in sitting-specific timetables; no stable duration is stated in the standing official exam rules
Exam / certification fees: Exam and application fees apply; current amounts are not published in the standing official exam rules. Official sources

Using Our Practice Resources

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Myanmar CPA Part I: Suggested Study Strategy

1Master the provisions of the Myanmar Companies Law 2017, especially MyCO electronic filing, director residency, and foreign ownership limits.

2Practice full accounting journal entries and financial statement presentation under MFRS / IFRS rules.

3Review the standard variance analysis formulas for materials, labor, and overheads under standard costing.

4Understand the statutory audit reporting requirements under Myanmar Standards on Auditing and MAC ethical directives.

Frequently Asked Questions

Who administers the Myanmar CPA Examination?

The examination is administered by the Myanmar Accountancy Council (MAC), a statutory body established under the Myanmar Accountancy Council Law 2015 and chaired by the Auditor General of the Union.

What subjects are tested in CPA Part I?

CPA Part I covers 6 subjects across two modules: Professional Financial Accounting & External Reporting I, Practical Auditing I, Performance and Financial Management, Business Environment and Management, Commercial and Industrial Laws, and Financial and Services Regulations.

What are the passing criteria for MAC CPA Part I?

Candidates must score at least 50 points in each of the 6 subject papers. The standing official exam page does not state a separate aggregate threshold.

Is this practice resource affiliated with or endorsed by MAC?

No. This practice resource is an independent English-language study tool created by OpenExamPrep for knowledge review and exam preparation. It is neither endorsed by nor affiliated with the Myanmar Accountancy Council or the Union Auditor General Office.