ICAN Exam Study Guide (2025)
FOUNDATION LEVEL
Paper: Business and Finance
1. What is the primary objective of a business?
- A. To satisfy customer needs
- B. To maximize shareholder wealth
- C. To produce goods and services
- D. To reduce competition
Answer: B
2. Which of the following is not a stakeholder in a business?
- A. Customers
- B. Government
- C. Competitors
- D. Suppliers
Answer: C
Paper: Financial Accounting
1. What is the double entry for depreciation of motor vehicles?
- A. Dr. Depreciation expense, Cr. Motor vehicles
- B. Dr. Accumulated depreciation, Cr. Depreciation expense
- C. Dr. Depreciation expense, Cr. Accumulated depreciation
- D. Dr. Motor vehicles, Cr. Depreciation expense
Answer: C
2. Which of these is not a type of error in accounting?
- A. Error of commission
- B. Error of principle
- C. Error of protocol
- D. Error of omission
Answer: C
SKILLS LEVEL
Paper: Financial Reporting
1. What does IFRS stand for?
- A. International Finance Reporting Standards
- B. International Financial Reporting Standards
- C. Internal Financial Reporting Standards
- D. International Firm Reporting Standards
Answer: B
2. Which of the following is not an element of financial statements under IASB framework?
- A. Assets
- B. Liabilities
- C. Equity
- D. Income Tax
Answer: D
Paper: Audit and Assurance
1. What is the primary objective of an audit?
- A. To detect fraud
- B. To prevent errors
- C. To express an opinion on financial statements
- D. To review management policies
Answer: C
2. What type of audit opinion is issued when financial statements are materially misstated?
- A. Unqualified opinion
- B. Qualified opinion
- C. Adverse opinion
- D. Disclaimer of opinion
Answer: C
PROFESSIONAL LEVEL
Paper: Advanced Taxation
1. What is the current corporate income tax rate in Nigeria?
- A. 20%
- B. 25%
- C. 30%
- D. 35%
Answer: C
2. Which of the following is not a deductible expense for tax purposes?
- A. Salaries and wages
- B. Fines and penalties
- C. Interest on loans
- D. Rent
Answer: B
Paper: Strategic Financial Management
1. What is the purpose of a financial ratio analysis?
- A. To increase profit
- B. To assess a firm’s financial health
- C. To prepare tax returns
- D. To conduct an audit
Answer: B
2. What is the formula for calculating Net Present Value (NPV)?
- A. Cash inflows - Initial investment
- B. Total revenue - Total cost
- C. Present value of inflows - Present value of outflows
- D. Profit after tax - Depreciation
Answer: C
