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Sample CPA Thailand — Paper: Accounting 1 Practice Questions

Try these sample questions to review concepts for the CPA Thailand — Paper: Accounting 1 exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 86+ question experience with AI tutoring.

1According to the Conceptual Framework for Financial Reporting under TFRS, what is the primary objective of general purpose financial reporting?
A.To provide financial information about the reporting entity that is useful to existing and potential investors, lenders, and other creditors in making decisions relating to providing resources to the entity
B.To show the exact liquidation value of the reporting entity's net assets for regulatory authorities and tax assessment bodies
C.To assist management in internal day-to-day operational control and operational variance tracking against standard budgets
D.To determine the maximum legal dividend distribution permitted under the Thai Public Limited Companies Act
Explanation: The Conceptual Framework establishes that the primary objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders, and other creditors in making resource-allocation decisions. General purpose financial reports are not designed to show the liquidation value of an entity, nor are they primarily directed to management for internal operational budgeting or to legal compliance formulas.
2How is an 'asset' defined in the revised Conceptual Framework for Financial Reporting adopted by TFAC?
A.A resource with physical substance owned legally by the enterprise from which certain economic benefits will flow
B.An expenditure incurred during the period that provides future tax deduction advantages
C.A past economic transaction that guarantees the inflow of cash within twelve months of the reporting date
D.A present economic resource controlled by the entity as a result of past events, where an economic resource is a right that has the potential to produce economic benefits
Explanation: Under the revised Conceptual Framework, an asset is defined as a present economic resource controlled by the entity as a result of past events, with an economic resource defined as a right that has the potential to produce economic benefits. The revised definition removed the requirement that economic benefits are 'expected to flow', clarifying that the right need only have the potential to produce benefits.
3Which measurement base under the Conceptual Framework reflects 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?
A.Fair value
B.Value in use
C.Current cost
D.Historical cost
Explanation: Value in use is an entity-specific current value measurement base that represents the present value of the cash flows, or other economic benefits, that an entity expects to derive from the continuing use of an asset and from its ultimate disposal. In contrast, fair value reflects market-participant assumptions rather than entity-specific expectations.
4An entity adopts a physical capital maintenance concept. At the beginning of the year, net assets required to maintain physical productive capacity were THB 10,000,000. At the end of the year, net assets before distributions are THB 12,500,000, and the replacement cost of the physical productive capacity at year-end is THB 11,800,000. No capital was contributed or distributed. Under the physical capital maintenance concept, what is the profit for the year?
A.THB 2,500,000
B.THB 1,800,000
C.THB 1,100,000
D.THB 700,000
Explanation: Under the physical capital maintenance concept, profit is earned only if the physical productive capacity (or operating capability) at the end of the period exceeds the physical productive capacity at the beginning of the period. The year-end net assets of THB 12,500,000 must exceed the year-end cost of maintaining opening physical capacity of THB 11,800,000. Thus, profit is THB 12,500,000 − THB 11,800,000 = THB 700,000. The THB 1,800,000 price change in productive assets is treated as a capital maintenance adjustment (equity) rather than profit.
5According to the Conceptual Framework and TAS 1, when is financial information deemed to be 'material'?
A.When the monetary value of the item exceeds exactly 5% of gross revenues or 10% of total non-current assets
B.If omitting, misstating, or obscuring it could reasonably be expected to influence decisions that primary users of general purpose financial reports make on the basis of those reports
C.Only when the error or omission results in the entity breaching a statutory banking debt covenant ratio
D.When the external auditor determines that the adjustment requires a formal qualified audit opinion
Explanation: Information is material if omitting, misstating, or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial reports make on the basis of those reports. Materiality is an entity-specific aspect of relevance based on the nature or magnitude, or both, of the items, without rigid numerical rule-of-thumb thresholds in the Framework.
6Which of the following items is explicitly excluded from the scope of TAS 2 Inventories?
A.Raw materials purchased for use in the manufacturing process of consumer goods
B.Finished goods manufactured by the entity and held for sale in the ordinary course of business
C.Biological assets related to agricultural activity and agricultural produce at the point of harvest
D.Materials and supplies waiting to be consumed in rendering commercial maintenance services
Explanation: TAS 2 explicitly scopes out biological assets related to agricultural activity and agricultural produce at the point of harvest, which are accounted for under TAS 41 Agriculture. It also scopes out financial instruments (TFRS 9). Raw materials, finished goods, and maintenance supplies held for consumption are within the scope of TAS 2.
7Under TAS 2 Inventories, which of the following costs must be recognized as an expense in profit or loss in the period incurred, rather than capitalized into inventory cost?
A.Direct import customs duties on raw materials delivered to the production factory
B.Direct labor costs incurred in assembling finished merchandise
C.Non-refundable municipal transit taxes levied on raw material shipments
D.Abnormal amounts of wasted materials, labor, or other production costs
Explanation: TAS 2 excludes abnormal waste from inventory cost and recognizes it as a current expense. Other exclusions include unnecessary storage, selling costs and administrative overheads that do not contribute to bringing inventory to its present location and condition. Normal production costs and directly attributable costs need separate evaluation.
8A Thai manufacturing entity imported raw materials with an invoice list price of THB 2,000,000. The supplier granted a commercial trade discount of 10% on the invoice. The entity paid THB 120,000 in non-refundable import customs duties, THB 50,000 in ocean freight and transit insurance, THB 140,000 in refundable value-added tax (VAT), and THB 30,000 in storage fees incurred after the goods arrived at the central warehouse awaiting scheduled production. What is the initial capitalized cost of the raw materials under TAS 2?
A.THB 1,970,000
B.THB 2,000,000
C.THB 2,110,000
D.THB 2,140,000
Explanation: Under TAS 2, the cost of purchases comprises the purchase price less trade discounts, plus import duties, transport, handling, and other costs directly attributable to the acquisition. Storage costs after arrival and refundable purchase taxes (VAT) are excluded. Capitalized cost = (THB 2,000,000 × 0.90) + THB 120,000 + THB 50,000 = THB 1,800,000 + THB 120,000 + THB 50,000 = THB 1,970,000.
9Chonburi Manufacturing Co. incurs THB 2,400,000 in fixed production overheads during the year. The normal operating capacity of its production plant is 100,000 units. Due to an unexpected temporary supply bottleneck, actual production for the year was only 80,000 units. How should the fixed production overheads be allocated and accounted for under TAS 2?
A.Capitalize all THB 2,400,000 into the 80,000 units produced at THB 30 per unit to ensure full absorption
B.Capitalize THB 1,920,000 into inventory (80,000 units at THB 24 per unit) and recognize THB 480,000 as an expense in profit or loss
C.Expense all THB 2,400,000 directly in profit or loss because production fell below normal capacity
D.Capitalize THB 1,920,000 into inventory and defer THB 480,000 on the balance sheet as an asset until normal production resumes
Explanation: Under TAS 2 paragraph 13, the allocation of fixed production overheads to the costs of conversion is based on the normal capacity of the production facilities. The fixed overhead rate is THB 2,400,000 / 100,000 units = THB 24 per unit. For the 80,000 units produced, THB 1,920,000 (80,000 × THB 24) is allocated to inventory. The unallocated fixed overhead of THB 480,000 (20,000 units × THB 24) is recognized as an expense in profit or loss in the period incurred.
10Under TAS 2, how is 'net realizable value' (NRV) defined?
A.The fair value of inventory as determined in an active market under TFRS 13 less general administration expenses
B.The historical cost adjusted for changes in the consumer price index since acquisition
C.The current replacement cost of obtaining an identical batch of goods from primary manufacturers
D.The estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale
Explanation: TAS 2 paragraph 6 defines net realizable value as the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. NRV is an entity-specific net amount that the entity expects to realize, unlike fair value.

About the CPA Thailand — Paper: Accounting 1 Exam

Independent practice by OpenExamPrep for CPA Thailand — Paper: Accounting 1. This is an independent English-language MCQ study adaptation, not an official translation, format simulation or substitute for handwritten cases and mandatory practical training. This 86-item bank offers selected practice in financial reporting, investments and group accounts, assets and impairment, taxes, financial instruments, lessee accounting and borrowing costs; it does not claim exhaustive coverage of the official scope.

Exam sponsor: สภาวิชาชีพบัญชี ในพระบรมราชูปถัมภ์ — Federation of Accounting Professions under Royal Patronage (TFAC). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

TFAC's paper-based four-hour sitting combines objective answer sheets and handwritten subjective solutions. Answers are in Thai, with English technical terms permitted. The sitting notice specifies no separate oral examination or coursework assignment; supervised audit training is a separate licensing requirement.

Time Limit

Four hours (240 minutes).

Passing Score

At least 60% for this subject; each passed subject may be retained for up to seven years under the current amendment.

Exam / Certification Fees

THB 1,000 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.

14 of 86 practice items; not an official exam weight

Framework and inventories

Reporting concepts, measurement, inventory costs and net realizable value.

23 of 86 practice items; not an official exam weight

Investments and group accounts

Business combinations, control judgments, consolidation, associates and joint arrangements.

34 of 86 practice items; not an official exam weight

Assets, leases and borrowing costs

PPE, intangibles, investment property, mineral resources, impairment, lessee accounting and qualifying borrowing costs.

15 of 86 practice items; not an official exam weight

Taxes, obligations and financial instruments

Deferred tax, provisions, employee benefits, effective interest, credit losses and hedge accounting.

Preparing for the CPA Thailand — Paper: Accounting 1 Exam

What You Need to Know

  • Passing score: At least 60% for this subject; each passed subject may be retained for up to seven years under the current amendment.
  • Assessment: TFAC's paper-based four-hour sitting combines objective answer sheets and handwritten subjective solutions. Answers are in Thai, with English technical terms permitted. The sitting notice specifies no separate oral examination or coursework assignment; supervised audit training is a separate licensing requirement.
  • Time limit: Four hours (240 minutes).
  • Exam / certification fees: THB 1,000 per subject. Official sources

Using Our Practice Resources

  • Work through all 86 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CPA Thailand — Paper: Accounting 1: Suggested Study Strategy

1Work through acquisition, consolidation and impairment cases with a reconciliation of every adjustment.
2Calculate lease liabilities, right-of-use costs and qualifying borrowing costs separately.
3Follow MCQ practice with handwritten Thai calculations and case explanations.

Frequently Asked Questions

Does this bank reproduce the official assessment?

This is an independent English-language MCQ study adaptation, not an official translation, format simulation or substitute for handwritten cases and mandatory practical training. The official assessment uses Thai paper objective answers and handwritten subjective solutions. English technical terms are permitted, which does not make the assessment English-language.

What training and result-retention conditions apply?

Recognized accounting education and approved training conditions apply. Auditing 1 and 2 require at least one year and 1,000 training hours before entry; final licensing ordinarily requires at least three years and 3,000 hours plus the other statutory conditions. Each passed subject can be retained for up to seven years under the current amendment; this is not a promise that passing the first subject starts one fixed deadline for all results.

How do the two accounting papers divide lease accounting?

TFAC's scopes place lessee accounting in Accounting 1 and lessor accounting in Accounting 2. Use the separate scope documents when planning study; this bank provides selected practice rather than exhaustive coverage.