PracticeVideosBlogFlashcardsEspañol
All Practice Exams

Free Practice Questions for SOCPA Financial Accounting

Exam-style questions and explanations by OpenExamPrep.

✓ No registration✓ No credit card
108+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More SOCPA Fellowship Exams (Saudi Arabia)

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

SOCPA Fellowship — Auditing Exam (Saudi Arabia)

Practice Questions101 questions

SOCPA Fellowship — Business Environment Exam (Saudi Arabia)

Practice Questions100 questions

SOCPA Fellowship — Management and Governmental Accounting Exam (Saudi Arabia)

Practice Questions100 questions

SOCPA Fellowship — Regulations and Business Law Exam (Saudi Arabia)

Practice Questions100 questions

SOCPA Fellowship — Zakat and Tax Exam (Saudi Arabia)

Practice Questions100 questions
Exam Review

Key Facts: SOCPA Financial Accounting Exam

60 + 4

Multiple-choice and essay questions on the official exam

SOCPA Professional Exams Guide 2026

300 minutes

180 minutes for Paper 1 and 120 minutes for Paper 2

SOCPA guidance blueprint, February 2026

75% / 25%

Share of marks for multiple-choice and essay questions

SOCPA guidance blueprint, February 2026

60/100

Pass mark, with at least 5 marks from the essay section

SOCPA guidance blueprint, February 2026

45–65%

Weight of the basic financial statement elements topic

SOCPA guidance blueprint, February 2026

Arabic & English

Languages in which the Fellowship exam is held

SOCPA Professional Exams Guide 2026

4 years + 30 days

Time to pass the other subjects before a passed subject is cancelled

SOCPA Professional Exams Guide 2026

SOCPA Financial Accounting is a 300-minute Fellowship subject with 60 multiple-choice and 4 essay questions (75% and 25% of marks), offered in Arabic and English. Passing needs 60/100, including at least 5 essay marks. These questions are an independent English-language MCQ study adaptation.

Sample SOCPA Financial Accounting Practice Questions

Try these sample questions to review concepts for the SOCPA Financial Accounting exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 108+ question experience with AI tutoring.

1Under the Conceptual Framework for Financial Reporting, which applies with IFRS as endorsed in Saudi Arabia, which are the two fundamental qualitative characteristics of useful financial information?
A.Comparability and verifiability
B.Relevance and timeliness
C.Relevance and faithful representation
D.Understandability and faithful representation
Explanation: Chapter 2 of the Conceptual Framework identifies relevance and faithful representation as the fundamental qualitative characteristics: information must be both relevant and faithfully represented to be useful. Comparability, verifiability, timeliness and understandability are enhancing qualitative characteristics that improve the usefulness of information that already has the fundamental characteristics.
2Which statement describes the enhancing qualitative characteristic of verifiability under the Conceptual Framework?
A.Information is classified, characterized and presented clearly and concisely
B.Information is available to decision-makers in time to be capable of influencing their decisions
C.Users can identify and understand similarities in, and differences among, items reported by different entities and periods
D.Different knowledgeable and independent observers could reach consensus that a depiction is a faithful representation
Explanation: Verifiability helps assure users that information faithfully represents the economic phenomena it purports to represent. It means that different knowledgeable and independent observers could reach consensus, although not necessarily complete agreement, that a particular depiction is a faithful representation.
3How does the revised Conceptual Framework define an asset?
A.A resource owned by the entity from which future economic benefits are certain to flow
B.A present economic resource controlled by the entity as a result of past events
C.An inflow of economic benefits expected to arise during the current operating cycle
D.Tangible or intangible property legally held by the entity as a result of past cash payments
Explanation: The revised Conceptual Framework defines an asset as a present economic resource controlled by the entity as a result of past events, and an economic resource as a right that has the potential to produce economic benefits. The definition no longer requires an expected inflow of benefits, so rights with uncertain outcomes can still be assets.
4Under the accrual basis of accounting required by IAS 1, when are the effects of transactions recognized in the financial statements?
A.When the effects of transactions and other events occur, regardless of when cash is received or paid
B.Only when cash is received from customers or paid to suppliers and employees
C.Only at the end of the year, when adjusting entries are posted before the accounts are closed
D.Only when a written contract has been signed and fully settled in cash by both parties
Explanation: IAS 1 requires an entity to prepare its financial statements, except for cash flow information, using the accrual basis. Items are recognized as assets, liabilities, equity, income and expenses when they meet the definitions and recognition criteria in the Conceptual Framework, whatever the timing of cash receipts or payments. IFRS 18, which replaces IAS 1 for periods beginning on or after 1 January 2027, carries this requirement forward.
5Which accounts are temporary (nominal) accounts that are closed to retained earnings at the end of the accounting cycle?
A.Cash, trade receivables and trade payables
B.Share capital, other reserves and retained earnings
C.Property, plant and equipment and accumulated depreciation
D.Revenue, expenses and dividends declared during the period
Explanation: Temporary accounts, such as revenue, expense, gain, loss and dividend accounts, accumulate balances for a single period and are closed at the end of the period to retained earnings, directly or through an income summary account. Statement of financial position accounts are permanent and carry their balances forward to the next period.
6A Riyadh company changes the estimated useful life of its manufacturing equipment from 10 years to 7 years because of rapid technological change. How is the change accounted for under IAS 8?
A.Retrospectively, by restating prior periods as if the seven-year life had always applied
B.Retrospectively, by recognizing a cumulative catch-up adjustment in opening retained earnings
C.By recognizing the prior years' under-depreciation as a separate loss in current profit or loss
D.Prospectively, by depreciating the remaining carrying amount over the revised remaining useful life
Explanation: A revision of an asset's useful life is a change in accounting estimate. IAS 8 requires the effect of a change in estimate to be recognized prospectively, in profit or loss of the period of change and of future periods affected, so the remaining carrying amount is depreciated over the revised remaining life. Prior periods are not restated.
7While preparing its 2025 financial statements, a Jeddah wholesaler discovers that inventory at 31 December 2024 was overstated by SAR 320,000 because count sheets were counted twice. The error is material. Ignoring zakat and tax effects, how is it corrected under IAS 8?
A.Recognize an administrative expense of SAR 320,000 in the 2025 statement of profit or loss, with a note explaining its origin
B.Restate the 2024 comparatives: raise 2024 cost of sales by SAR 320,000 and cut opening 2025 retained earnings by SAR 320,000
C.Leave the 2024 figures unchanged and let the overstatement reverse automatically through 2025 cost of sales as the goods are sold
D.Disclose the nature of the error in the 2025 notes without changing any of the amounts reported in the statements
Explanation: IAS 8 requires material prior-period errors to be corrected retrospectively in the first financial statements authorized for issue after their discovery, by restating the comparative amounts for the prior period in which the error occurred. Overstated closing inventory for 2024 understated 2024 cost of sales and overstated 2024 profit, so 2024 cost of sales is increased by SAR 320,000 and retained earnings at 1 January 2025 are reduced by the same amount.
8Under the Conceptual Framework, which measurement basis reflects the present value of the cash flows or other economic benefits that an entity expects to derive from using an asset and from its ultimate disposal?
A.Fair value
B.Current cost
C.Value in use
D.Historical cost
Explanation: The Conceptual Framework describes value in use as the present value of the cash flows, or other economic benefits, that an entity expects to derive from the use of an asset and from its ultimate disposal. It is an entity-specific current value, unlike fair value, which reflects market participants' assumptions.
9Under the physical capital maintenance concept described in the Conceptual Framework, when is a profit earned?
A.Only if net assets measured in nominal monetary units at the end of the period exceed those at the beginning, excluding owner transactions
B.Only if the entity's productive or operating capacity at the end of the period exceeds that at the beginning, excluding owner transactions
C.Only if cash inflows from operating activities exceed cash outflows from investing activities during the same period
D.Only if the purchasing power of equity at the end of the period exceeds that at the beginning, excluding owner transactions
Explanation: Under physical capital maintenance, a profit is earned only if the physical productive capacity (operating capability) of the entity, or the resources needed to achieve it, at the end of the period exceeds that at the beginning, after excluding distributions to and contributions from owners. Under financial capital maintenance, the comparison is made in monetary terms, either nominal or in units of constant purchasing power.
10On 1 October 2025, Al-Khobar Services LLC received SAR 240,000 in advance for a 12-month IT maintenance contract ending on 30 September 2026. The service is provided evenly over the term. What revenue and contract liability should it report for the year ended 31 December 2025?
A.Revenue of SAR 240,000 and contract liability of SAR 0
B.Revenue of SAR 0 and contract liability of SAR 240,000
C.Revenue of SAR 180,000 and contract liability of SAR 60,000
D.Revenue of SAR 60,000 and contract liability of SAR 180,000
Explanation: The service is worth SAR 240,000 ÷ 12 = SAR 20,000 a month. Three months (October to December 2025) have been provided, so revenue is 3 × SAR 20,000 = SAR 60,000. The remaining nine months, SAR 180,000, are an obligation to provide future services and are reported as a contract liability.

About the SOCPA Financial Accounting Exam

The Financial Accounting exam is one of six SOCPA Fellowship subjects. It has 60 multiple-choice questions and 4 essay questions over 300 minutes and is offered in Arabic and English. The February 2026 blueprint tests IFRS as endorsed in Saudi Arabia under three topics: the conceptual framework and accounting cycle, the basic financial statement elements, and other events, conditions and transactions such as group accounting. This free bank is an English-language MCQ study adaptation: it practices the knowledge and calculations behind both papers, but it does not simulate the essay paper and is not official SOCPA material.

Exam sponsor: Saudi Organization for Chartered and Professional Accountants (SOCPA). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Paper 1: 60 multiple-choice questions in 180 minutes. Paper 2: 4 essay questions in 120 minutes. Multiple-choice questions carry 75% of the marks and essays 25%. To pass, a candidate needs at least 60 of 100 marks, including at least 5 marks in the essay section.

Time Limit

300 minutes (180 + 120)

Passing Score

60/100, with at least 5 essay marks

Exam / Certification Fees

SAR 1,000 first sitting or SAR 500 later sitting, plus SAR 300 per subject

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.

5–15%

Conceptual Framework for Financial Reporting and the Accounting Cycle

The objective of general purpose financial reporting, qualitative characteristics of useful information, financial statements and the reporting entity, the elements and their recognition and measurement, capital and capital maintenance, first-time adoption of IFRS (IFRS 1), and the accounting cycle: double entry, books and records, recording and posting transactions, the trial balance and adjustments, preparing financial statements and closing the accounts.

45–65%

Measurement, Presentation and Disclosure of Basic Financial Statement Elements

Cash and the statement of cash flows (IAS 7), financial instruments (IFRS 9, IAS 32), receivables and notes receivable, inventories (IAS 2), property, plant and equipment (IAS 16), investment property (IAS 40), intangible assets (IAS 38), non-current assets held for sale and discontinued operations (IFRS 5), leases (IFRS 16), current and non-current liabilities, provisions and contingencies (IAS 37), deferred items, equity, revenue from contracts with customers (IFRS 15), and zakat and income taxes (IAS 12).

25–45%

Events, Conditions and Transactions Affecting Financial Position and Results

Accounting policies, changes in estimates and errors (IAS 8), events after the reporting period (IAS 10), related party disclosures (IAS 24), earnings per share (IAS 33), share-based payment (IFRS 2), employee and retirement benefits (IAS 19, IAS 26), hyperinflation (IAS 29), foreign exchange (IAS 21), consolidated and separate financial statements (IFRS 10, IAS 27), joint arrangements (IFRS 11), business combinations (IFRS 3), interests in other entities (IFRS 12), associates and joint ventures (IAS 28), interim reporting (IAS 34), operating segments (IFRS 8), impairment (IAS 36), borrowing costs (IAS 23), fair value measurement (IFRS 13), agriculture, insurance contracts, government grants (IAS 20), mineral resources, IFRS for SMEs and SOCPA-endorsed interpretations.

Preparing for the SOCPA Financial Accounting Exam

What You Need to Know

  • Passing score: 60/100, with at least 5 essay marks
  • Assessment: Paper 1: 60 multiple-choice questions in 180 minutes. Paper 2: 4 essay questions in 120 minutes. Multiple-choice questions carry 75% of the marks and essays 25%. To pass, a candidate needs at least 60 of 100 marks, including at least 5 marks in the essay section.
  • Time limit: 300 minutes (180 + 120)
  • Exam / certification fees: SAR 1,000 first sitting or SAR 500 later sitting, plus SAR 300 per subject Official sources

Using Our Practice Resources

  • Work through all 108 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

SOCPA Financial Accounting: Suggested Study Strategy

1Put most of your time into the basic financial statement elements, which carry 45–65% of the marks.
2Practice full calculations for leases, financial instruments at amortized cost, revenue contracts and consolidation, since the essay paper rewards clear workings.
3Remember that the Saudi Companies Law no longer requires a statutory reserve, so reserves now depend on the company's articles of association.
4Note that IFRS 18 replaces IAS 1 for periods starting on or after 1 January 2027, and check which version an exam question assumes.
5Practice writing short, structured essay answers. You must score at least 5 marks in the essay section as well as 60 overall.

Frequently Asked Questions

How many questions are on the SOCPA Financial Accounting exam?

64: Paper 1 has 60 multiple-choice questions in 180 minutes, and Paper 2 has 4 essay questions in 120 minutes. Multiple-choice questions carry 75% of the marks and essays 25%.

What score do I need to pass SOCPA Financial Accounting?

You need at least 60 out of 100 marks, and at least 5 of those marks must come from the essay section. Each Fellowship subject is marked and passed separately.

Which standards does the SOCPA Financial Accounting exam test?

The blueprint tests IFRS as endorsed in Saudi Arabia, plus SOCPA's other approved standards and pronouncements that supplement them. Saudi points such as zakat accounting and the end-of-service benefit under the Labor Law appear within those topics.

Can I take the SOCPA Fellowship exams in English?

Yes. SOCPA's 2026 Professional Exams Guide states that the Fellowship exam is held in Arabic and English.

How much does the SOCPA Fellowship exam cost?

SOCPA lists SAR 1,000 for your first sitting or SAR 500 for a later sitting, plus SAR 300 for each subject you enter. Check the current fees on SOCPA's website before registering.

When are the 2026 SOCPA Fellowship exams?

SOCPA scheduled four cycles in 2026, with Financial Accounting on the first day of each: 5 April, 28 June, 27 September and 20 December. Registration for the December cycle runs from 5 to 14 November 2026.

Are these questions the same format as the real exam?

No. This is an independent, English-language MCQ study adaptation. It covers the blueprint's three topics but does not reproduce the essay paper, which carries 25% of the marks. The questions are original and are not SOCPA past papers.