📘 CPA/ACCA INTERMEDIATE LEVEL EXAM PAPER
Title: Intermediate Financial Reporting & Management – IFRS-Based CPA
Exam Paper
Level: Intermediate (ACCA Applied Skills equivalent)
Duration: 3 Hours
Total Marks: 100
Instructions: Answer ALL questions in Sections A and B, and any ONE in
Section C.
🔹 SECTION A – MULTIPLE CHOICE QUESTIONS (20 MARKS)
(1 mark each)
1. Which of the following correctly describes the treatment of revenue
under IFRS 15?
A. Recognised when invoice is issued
B. Recognised when cash is received
C. Recognised when a performance obligation is satisfied
D. Recognised when sales order is placed
✅ Answer: C
2. Under IAS 2, which inventory valuation method is prohibited under
IFRS?
A. FIFO
B. Weighted average
C. LIFO
D. Specific identification
✅ Answer: C
, 3. Which of the following is NOT a limitation of ratio analysis?
A. Based on historical data
B. Can be used across all industries
C. Affected by different accounting policies
D. May not reflect seasonal variations
✅ Answer: B
4. Which standard deals with the presentation of financial statements?
A. IFRS 10
B. IAS 1
C. IFRS 13
D. IAS 36
✅ Answer: B
5. If the gearing ratio is high, this indicates:
A. Low financial risk
B. High liquidity
C. High dependence on debt financing
D. Strong equity structure
✅ Answer: C
🔹 SECTION B – STRUCTURED QUESTIONS (30 MARKS)
(Each question carries 10 marks)
6.
ABC Ltd had the following balances on 31 Dec 2024:
Opening Inventory: €12,000
Title: Intermediate Financial Reporting & Management – IFRS-Based CPA
Exam Paper
Level: Intermediate (ACCA Applied Skills equivalent)
Duration: 3 Hours
Total Marks: 100
Instructions: Answer ALL questions in Sections A and B, and any ONE in
Section C.
🔹 SECTION A – MULTIPLE CHOICE QUESTIONS (20 MARKS)
(1 mark each)
1. Which of the following correctly describes the treatment of revenue
under IFRS 15?
A. Recognised when invoice is issued
B. Recognised when cash is received
C. Recognised when a performance obligation is satisfied
D. Recognised when sales order is placed
✅ Answer: C
2. Under IAS 2, which inventory valuation method is prohibited under
IFRS?
A. FIFO
B. Weighted average
C. LIFO
D. Specific identification
✅ Answer: C
, 3. Which of the following is NOT a limitation of ratio analysis?
A. Based on historical data
B. Can be used across all industries
C. Affected by different accounting policies
D. May not reflect seasonal variations
✅ Answer: B
4. Which standard deals with the presentation of financial statements?
A. IFRS 10
B. IAS 1
C. IFRS 13
D. IAS 36
✅ Answer: B
5. If the gearing ratio is high, this indicates:
A. Low financial risk
B. High liquidity
C. High dependence on debt financing
D. Strong equity structure
✅ Answer: C
🔹 SECTION B – STRUCTURED QUESTIONS (30 MARKS)
(Each question carries 10 marks)
6.
ABC Ltd had the following balances on 31 Dec 2024:
Opening Inventory: €12,000
