BICA Qualification Practice Questions - BICA Botswana Chartered Accountancy Qualification Exam - BICA Qualification Practice Questions - BICA Botswana Chartered Accountancy Qualification Exam

Question 1

Under IAS 1 Presentation of Financial Statements, what is the primary criterion for determining whether an entity should prepare its financial statements on a going concern basis?

Management has assessed that the entity has neither the intention nor the need to liquidate or cease trading for at least 12 months from the reporting date The entity has generated positive operating cash flows and net accounting profit in the preceding three consecutive financial years An independent external auditor has issued an unqualified audit report confirming financial solvency for the upcoming financial period Total assets exceed total liabilities by at least 25% on the statement of financial position at the reporting date

Correct Answer:

Management has assessed that the entity has neither the intention nor the need to liquidate or cease trading for at least 12 months from the reporting date

Question 2

A business holds 1,000 units of product Alpha in inventory at year-end. Each unit cost P120 to manufacture. Due to market changes, the expected selling price is P140 per unit, but the company must incur P30 per unit in repackaging costs and a 5% sales commission on the selling price to sell them. Under IAS 2 Inventories, at what total value should product Alpha be reported in the statement of financial position?

P103,000 P120,000 P140,000 P110,000

Correct Answer:

P103,000

Question 3

Gaborone Enterprises acquired a heavy industrial machine on 1 January 2024 for P2,400,000. The machine consists of a main structural body (cost P1,800,000; useful life 15 years; nil residual value) and a specialized turbine unit (cost P600,000; useful life 5 years; nil residual value). Straight-line depreciation is applied. On 31 December 2025, before any revaluation, what is the total carrying amount of the machine under IAS 16 Property, Plant and Equipment?

P1,920,000 P2,080,000 P1,800,000 P2,160,000

Correct Answer:

P1,920,000

Question 4

Under IAS 23 Borrowing Costs, which of the following conditions mandates the capitalization of borrowing costs as part of the cost of an asset?

The borrowing costs are directly attributable to the acquisition, construction, or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale Management elects to capitalize borrowing costs as an accounting policy choice applied consistently across all tangible and intangible assets The funds are borrowed under a general overdraft facility with variable interest rates regardless of asset construction duration The asset being constructed is financed exclusively through internal retained earnings without external debt

Correct Answer:

Question 5

Under IAS 20 Accounting for Government Grants and Disclosure of Government Assistance, how should a grant related to depreciable assets be recognized in the financial statements?

Either as deferred income amortized to profit or loss over the useful life of the asset, or by deducting the grant from the carrying amount of the asset Directly in retained earnings as an equity contribution in the period the cash grant is received Immediately in profit or loss as other operating income in full upon receipt of the grant funds In other comprehensive income as a permanent revaluation reserve that is never reclassified to profit or loss

Correct Answer:

Either as deferred income amortized to profit or loss over the useful life of the asset, or by deducting the grant from the carrying amount of the asset

Question 1

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Prepare with the BICA Qualification Practice Questions - BICA Botswana Chartered Accountancy Qualification Exam practice quiz. This question bank includes 100 questions covering company, botswana, cost, rate, and financial. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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BICA Qualification Practice Questions - BICA Botswana Chartered Accountancy Qualification Exam

This practice set contains 100 questions from the matching question bank and focuses on company, botswana, cost, rate, and financial. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

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BICA Qualification Practice Questions - BICA Botswana Chartered Accountancy Qualification Exam

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