100+ Free CPA Uganda Foundation Practice Questions

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2026 Statistics

Key Facts: CPA Uganda Foundation Exam

50%

Passing Score

ICPAU

Papers

Syllabus

115k UGX

Exam Fee/Paper

ICPAU 2026

160k UGX

Registration Fee

ICPAU

3 hours

Time per Paper

PAEB Guidelines

Bi-annual

Exam Diet

May & Nov

The ICPAU CPA(U) Foundation Level (Level I) is the starting point for aspiring Certified Public Accountants in Uganda. Comprising 6 papers, each exam lasts 3 hours, consists of 20 Section A MCQs and a Section B choice. The passing score is 50% per paper. Regular fees are 115,000 UGX per paper, plus a 160,000 UGX registration fee. High-quality preparation is essential as these subjects form the basis of all future levels.

Sample CPA Uganda Foundation Practice Questions

Try these sample questions to test your CPA Uganda Foundation exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which accounting concept dictates that a business is treated as a separate entity from its owners, meaning the owner's personal transactions should not be recorded in the business books?

A.Business Entity concept

B.Going Concern concept

C.Historical Cost concept

D.Money Measurement concept

Explanation: The Business Entity concept states that a business is separate and distinct from its owners. Therefore, personal transactions of the owner (like paying home rent) must not be mixed with business transactions (like paying office rent). The going concern concept assumes the business will continue indefinitely, historical cost relates to recording assets at acquisition price, and money measurement means only transactions expressible in monetary terms are recorded.

2A business purchased a delivery van for UGX 45,000,000. It is estimated to have a useful life of 5 years and a residual value of UGX 5,000,000. Under the straight-line method, what is the annual depreciation charge and the carrying amount at the end of Year 2?

A.Depreciation: UGX 8,000,000; Carrying Amount: UGX 29,000,000

B.Depreciation: UGX 9,000,000; Carrying Amount: UGX 27,000,000

C.Depreciation: UGX 8,000,000; Carrying Amount: UGX 37,000,000

D.Depreciation: UGX 9,000,000; Carrying Amount: UGX 36,000,000

Explanation: Annual straight-line depreciation is calculated as (Cost - Residual Value) / Useful Life = (45,000,000 - 5,000,000) / 5 = UGX 8,000,000. At the end of Year 2, the accumulated depreciation is UGX 8,000,000 * 2 = UGX 16,000,000. The carrying amount is Cost - Accumulated Depreciation = 45,000,000 - 16,000,000 = UGX 29,000,000.

3Which of the following errors would cause the totals of a trial balance to disagree, thereby requiring the opening of a suspense account?

A.A transaction is completely omitted from the journal and ledger books (Error of Omission)

B.A debit entry of UGX 500,000 is made in the cash book, but no corresponding credit entry is posted in the sales account (Single-entry posting error)

C.A purchase of office equipment is debited to the repairs and maintenance expense account (Error of Principle)

D.A sale of UGX 120,000 is recorded as UGX 210,000 in both the sales and customer accounts (Error of Original Entry)

Explanation: A single-entry posting error (debiting one account but failing to credit another) violates the double-entry rule and causes the trial balance debit and credit totals to disagree, necessitating a suspense account. Errors of omission, principle, and original entry affect both debits and credits equally, meaning the trial balance will still balance, and no suspense account is generated.

4In preparing a bank reconciliation statement, a company's cash book balance shows a debit balance of UGX 12,400,000. The bank statement shows a different balance. Upon investigation, bank charges of UGX 150,000 and a direct debit of UGX 450,000 are on the bank statement but not in the cash book. Additionally, unpresented checks total UGX 1,800,000. What is the adjusted cash book balance before reconciling with the bank statement?

A.UGX 11,800,000

B.UGX 13,600,000

C.UGX 12,250,000

D.UGX 10,000,000

Explanation: To find the adjusted cash book balance, we must deduct items that appear in the bank statement but have not yet been recorded in the cash book. Thus, Adjusted Cash Book Balance = 12,400,000 (starting balance) - 150,000 (bank charges) - 450,000 (direct debit) = UGX 11,800,000. Unpresented checks are reconciling items shown in the bank reconciliation statement itself, not adjustments to the cash book.

5According to IAS 2 (Inventories), how should inventory be valued in the financial statements?

A.At the lower of cost and net realizable value

B.At the higher of cost and net realizable value

C.At the historical cost of acquisition plus estimated profit margin

D.At the replacement cost of similar goods in the local market

Explanation: IAS 2 (Inventories) states that inventory must be measured at the lower of cost and net realizable value (NRV). This embodies the prudence concept, ensuring that inventories are not overstated. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and selling expenses.

6A sole trader has a beginning inventory of UGX 6,000,000 and an ending inventory of UGX 8,000,000. Total purchases during the year were UGX 54,000,000, excluding carriage inwards of UGX 2,000,000. What is the Cost of Sales for the period?

A.UGX 54,000,000

B.UGX 52,000,000

C.UGX 56,000,000

D.UGX 50,000,000

Explanation: Cost of Sales = Opening Inventory + Purchases + Carriage Inwards - Closing Inventory. In this case, since purchases exclude carriage inwards, the total purchase-related cost is UGX 54,000,000 + UGX 2,000,000 = UGX 56,000,000. Therefore, Cost of Sales = 6,000,000 + 56,000,000 - 8,000,000 = UGX 54,000,000. Carriage inwards is added to purchases because it is a direct cost of bringing inventory to its current location.

7On 1 July 2025, a business paid UGX 3,600,000 for a 12-month insurance policy covering the period up to 30 June 2026. What are the entries in the statement of profit or loss and statement of financial position for the year ending 31 December 2025?

A.Statement of Profit or Loss: UGX 1,800,000 expense; Statement of Financial Position: UGX 1,800,000 prepayment (current asset)

B.Statement of Profit or Loss: UGX 3,600,000 expense; Statement of Financial Position: Nil

C.Statement of Profit or Loss: UGX 2,400,000 expense; Statement of Financial Position: UGX 1,200,000 prepayment (current asset)

D.Statement of Profit or Loss: UGX 1,200,000 expense; Statement of Financial Position: UGX 2,400,000 prepayment (current asset)

Explanation: The insurance policy covers a 12-month period from 1 July 2025 to 30 June 2026 at a total cost of UGX 3,600,000. The monthly rate is UGX 3,600,000 / 12 = UGX 300,000. For the financial year ending 31 December 2025 (a period of 6 months), the expense recognized in the Statement of Profit or Loss is 6 months * UGX 300,000 = UGX 1,800,000. The remaining 6 months of the policy represent a prepaid expense. Thus, the Statement of Financial Position recognizes a prepayment of 6 months * UGX 300,000 = UGX 1,800,000 as a current asset.

8Which of the following accounts normally has a credit balance?

A.Sales Returns (Return Inwards) account

B.Carriage Outwards account

C.Purchase Returns (Return Outwards) account

D.Trade Receivables account

Explanation: Purchase Returns (Return Outwards) reduce the expense of purchases, which normally has a debit balance; therefore, the Purchase Returns account has a credit balance. Sales Returns, Carriage Outwards (expense), and Trade Receivables (asset) all normally carry debit balances.

9Musa and Sarah are in a partnership, sharing profits and losses in the ratio 3:2. The partnership agreement provides for interest on capital at 10% per annum. At the start of the year, Musa's capital was UGX 20,000,000 and Sarah's capital was UGX 10,000,000. The net profit for the year before interest on capital was UGX 8,000,000. What is Musa's total share of profit (including interest on capital) for the year?

A.UGX 5,000,000

B.UGX 2,000,000

C.UGX 3,000,000

D.UGX 4,800,000

Explanation: First, calculate interest on capital: Musa = 10% of 20,000,000 = UGX 2,000,000; Sarah = 10% of 10,000,000 = UGX 1,000,000. Total interest on capital is UGX 3,000,000. The residual profit to share is Net Profit - Total Interest on Capital = 8,000,000 - 3,000,000 = UGX 5,000,000. Musa's share of residual profit is 3/5 * 5,000,000 = UGX 3,000,000. Thus, Musa's total profit share = Interest on Capital (2,000,000) + Share of Residual Profit (3,000,000) = UGX 5,000,000.

10What is the primary function of a Purchase Ledger Control Account?

A.To record individual transactions of cash purchases from suppliers

B.To check the arithmetic accuracy of the individual accounts in the purchase ledger by summarizing trade payables transactions

C.To track all non-current assets purchased on credit during the financial year

D.To control the cash flows related to general business expenses and administrative bills

Explanation: A Purchase Ledger Control Account (Trade Payables Control Account) maintains a summary of all transactions with credit suppliers. Its balance should equal the sum of individual balances in the purchase ledger, acting as a check on arithmetic accuracy and helping detect postings errors in individual ledger accounts.

About the CPA Uganda Foundation Exam

The Foundation Level is Level I of the CPA Uganda program, testing competencies in Accounting, Economics, Quantitative Techniques, MIS, Law, and Costing.

Questions

20 scored questions

Time Limit

3 hours per paper

Passing Score

50%

Exam Fee

115,000 UGX per paper (ICPAU)

CPA Uganda Foundation Exam Content Outline

17%

Financial Accounting (Paper 1)

Accounting standards, recording transactions, preparing sole trader, partnership and company financial statements, and bank reconciliation.

17%

Economics & Entrepreneurship (Paper 2)

Micro and macroeconomics, public finance, development planning, entrepreneurship concepts and business plan formulation in Uganda.

16%

Quantitative Techniques (Paper 3)

Mathematics of finance, statistics, probability distributions, index numbers, time series, linear programming, network analysis, and calculus.

16%

Management & Information Systems (Paper 4)

Principles of management, planning, organizing, leadership, controlling, and information systems fundamentals, networks, and databases.

17%

Business & Company Law (Paper 5)

The Ugandan legal system, contract law, sale of goods, partnerships, and company incorporation and administration under the Companies Act 2012.

17%

Cost & Management Accounting (Paper 6)

Material, labor, and overhead costing, costing methods (job, batch, process), budgeting, marginal and absorption costing, and cost-volume-profit analysis.

How to Pass the CPA Uganda Foundation Exam

What You Need to Know

Passing score: 50%
Exam length: 20 questions
Time limit: 3 hours per paper
Exam fee: 115,000 UGX per paper

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CPA Uganda Foundation Study Tips from Top Performers

1Dedicate at least 20-30 study hours per subject, focusing on working through calculations in Financial Accounting and Costing.

2Read the Ugandan Companies Act 2012 key sections (directors, incorporation, audits) for Business and Company Law.

3Practice statistics and linear programming problems regularly as Quantitative Techniques has a heavy calculation component.

4Understand the Ugandan context of fiscal and monetary policies, public finance, and the Role of the Bank of Uganda for Economics.

5Consistently test yourself with practice questions to build speed, as the exams are 3 hours long.

Frequently Asked Questions

What is the passing mark for the CPA Uganda Level I exams?

The passing mark for each paper in Level I of the CPA Uganda qualification is 50%. A candidate who scores 50% or above in a subject is credited with a pass in that subject. If a candidate fails a paper, they can retake it in the subsequent exam sitting.

What are the subjects of the ICPAU CPA(U) Foundation Level?

The ICPAU CPA(U) Foundation Level (Level I) consists of six compulsory subjects: Paper 1: Financial Accounting; Paper 2: Economics and Entrepreneurship; Paper 3: Quantitative Techniques; Paper 4: Management and Information Systems; Paper 5: Business and Company Law; and Paper 6: Cost and Management Accounting.

How much does the CPA Uganda Level I exam cost?

The exam registration fee is 115,000 UGX per paper for Level I. For all 6 papers, the total exam fee is 690,000 UGX. Additionally, new students must pay a one-time studentship registration fee of 160,000 UGX, an annual renewal fee of 130,000 UGX, and a 20,000 UGX National Council for Higher Education (NCHE) fee.

How often are the CPA Uganda exams held?

CPA Uganda examinations are held twice a year, typically in May and November. ICPAU releases the exact timetables and registration deadlines on their student portal a few months prior to each exam diet.

Can I sit for Level I and Level II papers at the same time?

Under ICPAU progression rules, you must complete all Level I papers before proceeding to Level II. However, if you have at most two papers remaining at Level I, you may sit for those remaining papers concurrently with papers from Level II.