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CIE · IGCSE · Accounting

Free CIE IGCSE Accounting
Practice Paper

8 mixed-difficulty practice questions in the style of real CIE IGCSE papers — answers, mark-scheme-style explanations, and the official exam structure all on one page.

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What the real CIE IGCSE Accounting paper looks like

Paper 1 (Multiple Choice)
40 multiple-choice questions, 1 mark each. 45 minutes. Tests breadth of knowledge.
Paper 2 (Core) / Paper 4 (Extended)
Structured written paper. 1 hour 30 minutes (Core) or 1 hour 45 minutes (Extended). Tests depth of understanding and application.
Paper 6 (Alternative to Practical)
Written paper assessing practical skills for candidates without lab access. 1 hour. Worth ~20% of the total.
Total exam time: ~3 hours, depending on tier (Core vs Extended).
Grading: Grades: A* (highest) to G (lowest), with U (ungraded). Most universities require C or above.

Mini practice paper: 8 questions

Mixed-difficulty questions from across the Accounting syllabus. Tap "Show answer" after each to check yourself.

Q1 · Difficulty 1/3

What is the main purpose of preparing a trial balance?

  1. To calculate the profit or loss for the period
  2. To check the arithmetical accuracy of the double entry records
  3. To show the financial position of the business
  4. To record all transactions for the accounting period
Show answer & explanation
✓ Answer: B — To check the arithmetical accuracy of the double entry records
Award 1 mark for identifying that the trial balance checks arithmetical accuracy of double entry records. A is incorrect — profit or loss is calculated in the income statement. C is incorrect — financial position is shown in the statement of financial position. D is incorrect — transactions are recorded in books of original entry and ledger accounts.
Q2 · Difficulty 1/3

What is the purpose of a sales ledger control account?

  1. To record individual transactions with each credit customer
  2. To provide a total of amounts owed by trade receivables
  3. To calculate the profit made on credit sales
  4. To record cash received from all customers
Show answer & explanation
✓ Answer: B — To provide a total of amounts owed by trade receivables
Award 1 mark for identifying that the sales ledger control account provides a total of amounts owed by trade receivables (debtors). A is incorrect — individual transactions are recorded in the sales ledger, not the control account. C is incorrect — profit calculation is not the function of a control account. D is incorrect — it records credit transactions, not all cash received.
Q3 · Difficulty 1/3

Which method of inventory valuation assumes that the first items purchased are the first items sold?

  1. AVCO
  2. FIFO
  3. LIFO
  4. Specific identification
Show answer & explanation
✓ Answer: B — FIFO
Award 1 mark for identifying FIFO (First In, First Out) as the method where the earliest purchased inventory is assumed to be sold first. A is incorrect — AVCO uses a weighted average cost. C is incorrect — LIFO (Last In, First Out) assumes latest purchases are sold first and is not permitted under IAS 2. D is incorrect — specific identification tracks individual items, not a flow assumption.
Q4 · Difficulty 2/3

A business is choosing between FIFO and AVCO for inventory valuation. Which of the following is NOT an advantage of using AVCO?

  1. It smooths out the effect of price fluctuations
  2. It is easier to apply in a perpetual inventory system
  3. Closing inventory reflects the most current costs
  4. It reduces the impact of individual price changes on profit
Show answer & explanation
✓ Answer: C — Closing inventory reflects the most current costs
Award 1 mark for identifying that AVCO does NOT provide closing inventory at current costs — this is an advantage of FIFO. Under AVCO, closing inventory is valued at the averaged cost, not the most recent prices. A, B, and D are genuine advantages of AVCO: it smooths fluctuations, is simpler to maintain, and reduces profit volatility.
Q5 · Difficulty 2/3

Mwangi Ltd operates a retail business in Nairobi. The following information is available: Gross profit: $45,000 Revenue: $150,000 Net profit: $18,000 What is the gross profit margin?

  1. 12%
  2. 30%
  3. 40%
  4. 333%
Show answer & explanation
✓ Answer: B — 30%
Award 1 mark for correct calculation: ($45,000 ÷ $150,000) × 100 = 30%. A is incorrect — this is the net profit margin ($18,000 ÷ $150,000). C is incorrect — this confuses gross profit with net profit ratio. D is incorrect — this divides revenue by gross profit instead of the correct formula.
Q6 · Difficulty 2/3

Hassan and Irene are partners with capital balances of $50,000 and $30,000 respectively. They share profits and losses in the ratio 2:1. The partnership agreement allows interest on capital at 8% per annum. The net profit for the year was $15,000. What is the residual profit to be shared between the partners?

  1. $8,600
  2. $9,600
  3. $15,000
  4. $21,400
Show answer & explanation
✓ Answer: A — $8,600
Award 1 mark for correct calculation. Interest on capital: Hassan = $50,000 × 8% = $4,000; Irene = $30,000 × 8% = $2,400. Total interest = $6,400. Residual profit = $15,000 − $6,400 = $8,600. B is incorrect — calculation error. C is incorrect — does not deduct interest on capital. D is incorrect — adds interest to profit instead of deducting.
Q7 · Difficulty 1/3

Which of the following items would be classified as a non-current asset in the balance sheet?

  1. Trade receivables
  2. Bank overdraft
  3. Motor vehicles
  4. Inventory
Show answer & explanation
✓ Answer: C — Motor vehicles
Award 1 mark for identifying that motor vehicles are held for long-term use in the business (more than one year). A is incorrect — trade receivables are current assets as they are expected to be converted to cash within 12 months. B is incorrect — bank overdraft is a current liability. D is incorrect — inventory is a current asset as it is held for resale within the normal operating cycle.
Q8 · Difficulty 1/3

Which item appears in the trading account section of a sole trader's income statement?

  1. Carriage inwards
  2. Carriage outwards
  3. Discount allowed
  4. Rent expense
Show answer & explanation
✓ Answer: A — Carriage inwards
Award 1 mark for identifying that carriage inwards is added to purchases in the trading account as it is a cost of getting goods to the business. B is incorrect — carriage outwards is a selling expense shown in the profit and loss section. C is incorrect — discount allowed is a finance expense in the profit and loss section. D is incorrect — rent expense is an overhead shown in the profit and loss section.
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CIE IGCSE Accounting FAQ

What does the CIE IGCSE Accounting exam look like?
The CIE IGCSE Accounting exam is structured across 3 components. Paper 1 (Multiple Choice): 40 multiple-choice questions, 1 mark each. 45 minutes. Tests breadth of knowledge. Paper 2 (Core) / Paper 4 (Extended): Structured written paper. 1 hour 30 minutes (Core) or 1 hour 45 minutes (Extended). Tests depth of understanding and application. Paper 6 (Alternative to Practical): Written paper assessing practical skills for candidates without lab access. 1 hour. Worth ~20% of the total. Total exam time: ~3 hours, depending on tier (Core vs Extended).
Can I download a free CIE IGCSE Accounting past paper?
Real CIE past papers are published directly by CIE on their official website. Kramizo doesn't redistribute copyrighted past papers, but we do generate free AI-written practice papers in the exact same style — same command words, same difficulty tier, same mark conventions. Use this practice paper as warm-up, then time yourself on official past papers before exam day.
How is CIE IGCSE Accounting graded?
Grades: A* (highest) to G (lowest), with U (ungraded). Most universities require C or above. Kramizo's practice questions are tagged with difficulty 1-3 mapping roughly to the lower, middle, and top grade boundaries you'll encounter in the real exam.