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100+ Free CTA Accounting CBE Practice Questions

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2026 Statistics

Key Facts: CTA Accounting CBE Exam

100

Practice Questions

OpenExamPrep

40

Official CBE Questions

CIOT CBEs page / ATT About Examinations

1 hour

Time Limit

CIOT CBE Guidance on Success

60%

Pass Mark

CIOT CBE FAQs / Guidance on Success

£127

Fee per CBE Attempt

CIOT CTA Student Fees 2026

£70

Principles of Accounting Manual

CIOT CTA Student Fees 2026

CTA Accounting CBE: 40 questions, 1 hour, 60% pass, £127 per attempt via Prometric. Compulsory CBE alongside Law and Ethics. Syllabus is the Principles of Accounting manual. Sit CIOT sample CBEs, then use these 100 free practice questions for deeper revision.

Sample CTA Accounting CBE Practice Questions

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

1Under the accounting equation used in the Principles of Accounting CBE, which restatement is correct for a sole trader?
A.Assets − Liabilities = Capital + Profits − Drawings
B.Assets + Liabilities = Capital − Profits + Drawings
C.Assets = Capital − Liabilities − Profits
D.Liabilities − Assets = Capital + Drawings
Explanation: The accounting equation can be rearranged as Assets − Liabilities = Capital + Profits − Drawings. Net assets equal the proprietor's interest after profits and drawings.
2Amounts due to suppliers for goods purchased on credit are classified as:
A.Revenue for the period
B.A liability
C.An asset
D.Drawings
Explanation: Trade payables (creditors) are amounts owed by the business and are liabilities.
3Drawings by a sole trader are part of:
A.Revenue
B.Non-current assets
C.Proprietor's funds (capital)
D.Trade payables
Explanation: Drawings reduce the proprietor's interest and are treated within capital/proprietor's funds.
4A trial balance still balances after which type of error?
A.A single-sided entry posted to one account only
B.A transposition that affects only one account
C.Posting a debit as a credit with no compensating entry
D.An error of omission where a transaction is completely omitted from both sides
Explanation: Complete omission of a transaction (neither debit nor credit recorded) leaves the trial balance in balance, though the accounts are incomplete.
5Discounts allowed to customers are treated in the profit and loss account as:
A.An expense
B.Income
C.A capital introduction
D.A direct reduction of share capital in company accounts only
Explanation: Discounts allowed are an expense. Discounts received from suppliers are income.
6Discounts received from suppliers are treated in the profit and loss account as:
A.A fixed asset
B.Income
C.An expense
D.Drawings
Explanation: Discounts received are recognised as income in the profit and loss account.
7Which of the following is capital expenditure?
A.Buying food for staff lunches
B.Paying the electricity bill for the quarter
C.Purchase of a delivery van for long-term business use
D.Paying the monthly office rent
Explanation: Capital expenditure acquires or improves a non-current asset that will benefit future periods. Rent, food and electricity are revenue expenses.
8The cost of purchasing goods for resale is recorded by debiting:
A.Sales
B.Retained earnings
C.Drawings
D.Purchases
Explanation: Goods bought for resale are debited to Purchases. The purchases account accumulates cost of goods bought.
9The cost of a new machine acquired for use in the business is debited to:
A.A non-current (fixed) asset account
B.Purchases of goods for resale
C.Drawings
D.Sales returns
Explanation: Acquisition cost of a fixed asset is capitalised by debiting the relevant non-current asset account.
10Receiving cash of £400 from a credit customer is recorded by:
A.Debiting drawings and crediting sales
B.Debiting bank/cash and crediting receivables (debtors)
C.Debiting receivables and crediting bank
D.Debiting purchases and crediting bank
Explanation: Cash received increases the bank (debit) and clears the customer's receivable (credit to debtors).

About the CTA Accounting CBE Exam

The CTA Principles of Accounting CBE is a compulsory one-hour computer-based examination of 40 questions for Chartered Tax Adviser students. It tests accounting areas that impact tax practitioners — double entry, financial statements for sole traders/partnerships/companies, depreciation, inventory, receivables, tax accounting (including deferred tax timing differences), cash flows and performance analysis — based entirely on the Principles of Accounting manual. The pass mark is 60%. Each CBE attempt costs £127 (CIOT CTA student fees 2026). A basic calculator (non-Accounting, non-Scientific) is allowed at test centres for Accounting only; an onscreen calculator is also available.

Assessment

Compulsory computer-based exam for CTA candidates (unless exempt). Book via CIOT/Prometric; mix of MCQ, multiple response, drag-and-drop and select-from-list. Immediate on-screen result. Two official sample exams (40Q each).

Time Limit

1 hour

Passing Score

60% (24 of 40)

Exam Fee

£127 per attempt (Chartered Institute of Taxation (CIOT))

CTA Accounting CBE Exam Content Outline

22%

Double entry and bookkeeping basics

Equation, journals, TB/errors, discounts, capital vs revenue, VAT

8%

Accruals and prepayments

Accruals, prepayments, deferred income, overdrafts

10%

Non-current assets and depreciation

Cost, depreciation methods, disposals, tax add-back

8%

Intangibles and grants

R&D, goodwill, government grant models

8%

Inventory

Cost/NRV, COS, FIFO, write-downs

8%

Receivables and provisions

Bad/doubtful debts, recoveries, debtor days

14%

Business entities and equity

Sole traders, partnerships, company equity, contingencies

10%

Tax accounting

CT charge/liability, temporary vs permanent differences

8%

Cash flow statements

Operating/investing/financing and indirect method

4%

Ratios and performance

Margins, liquidity and activity ratios

How to Pass the CTA Accounting CBE Exam

What You Need to Know

  • Passing score: 60% (24 of 40)
  • Assessment: Compulsory computer-based exam for CTA candidates (unless exempt). Book via CIOT/Prometric; mix of MCQ, multiple response, drag-and-drop and select-from-list. Immediate on-screen result. Two official sample exams (40Q each).
  • Time limit: 1 hour
  • Exam fee: £127 per attempt

Keys to Passing

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

CTA Accounting CBE Study Tips from Top Performers

1Buy and work the current Principles of Accounting manual — CIOT CBEs are book-syllabus assessments
2Sit both official sample Accounting CBEs under timed conditions before booking the live exam
3Memorise temporary vs permanent differences: depreciation/CA differences reverse; much business entertaining does not
4Drill cash flow classifications: share and debenture proceeds are financing; asset sale proceeds are investing
5Practise provision and inventory NRV calculations with the onscreen calculator under time pressure
6Aim for ~90 seconds per question to match the live 40 questions / 60 minutes pace

Frequently Asked Questions

How many questions are on the CTA Principles of Accounting CBE?

The official Accounting CBE has 40 questions in one hour (unlike Law and Ethics, which have 50). This practice set has 100 MCQs for broader syllabus coverage.

What is the pass mark for CTA Accounting?

You need 60% to pass each CIOT CBE, including Accounting (24 correct out of 40).

How much does the Accounting CBE cost?

Each attempt at Law, Professional Responsibilities & Ethics, or Principles of Accounting costs £127 according to the CIOT CTA student fees page for 2026. Confirm the current figure on tax.org.uk/CTA-student-fees before booking.

What should I study for Accounting?

CIOT states questions are drawn entirely from the Principles of Accounting manual. Topics include double entry, financial statements for sole traders/partnerships/companies, and analysis of business performance — reflected in the official sample Accounting CBEs.

Are calculators allowed?

For the Accounting CBE only, you may take a basic calculator (non-Accounting, non-Scientific) into a test centre. An onscreen calculator is also available for Accounting questions.

How should I use this free practice bank?

After reading the manual and sitting both official 40-question sample Accounting CBEs, work through all 100 questions by category, review every miss, and re-test weak areas (tax timing differences, cash flow classification and provisions are frequent trip-ups).