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Austria BKF D95 study materials
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Austria BKF D95 practice questions

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Question 1Legal foundations and professional regulations

Which Austrian statute primarily governs the professional practice and training requirements of the BKF (Bilanzbuchhaltung) profession?

  1. The Wirtschaftstreuhandberufsgesetz
  2. The Bilanzbuchhaltungsgesetz (BiBuG) Correct answer.
  3. The Handelsgesetzbuch
  4. The Gewerbeordnung 1994

Explanation

The Bilanzbuchhaltungsgesetz (BiBuG) is the dedicated federal law regulating the profession of Bilanzbuchhalter, including examination requirements, professional duties and disciplinary rules. The Gewerbeordnung covers general trades, the Handelsgesetzbuch governs commercial accounting rules, and the Wirtschaftstreuhandberufsgesetz regulates tax advisors and auditors.

Question 2Legal foundations and professional regulations

Under the BiBuG, which body is responsible for maintaining the official register of Bilanzbuchhalter in Austria?

  1. The Austrian National Bank
  2. The competent district administrative authority Correct answer.
  3. The Ministry of Finance
  4. The Austrian Chamber of Commerce

Explanation

The BiBuG assigns registration and supervisory functions to the competent district administrative authority (Bezirksverwaltungsbehörde), which maintains the register of members of the profession. The Chamber of Commerce represents business interests, the Ministry of Finance sets fiscal policy, and the National Bank has no professional registration role.

Question 3Legal foundations and professional regulations

A candidate applies to take the BKF examination. Which of the following is generally a prerequisite for admission under the BiBuG?

  1. Professional experience in accounting in addition to relevant education Correct answer.
  2. A completed university degree in economics
  3. Membership in a political party
  4. Ownership of a registered business

Explanation

Admission to the BKF examination typically requires a combination of relevant education and documented practical experience in accounting. A university degree alone, political membership, or business ownership are not the statutory admission criteria.

Question 4Legal foundations and professional regulations

What is the primary professional duty of a Bilanzbuchhalter regarding the preparation of financial statements for clients?

  1. To prepare statements in accordance with applicable legal requirements and professional standards Correct answer.
  2. To audit the client's internal control system
  3. To act as the client's legal representative in court
  4. To guarantee the client a specific tax saving

Explanation

The professional duty is to prepare financial statements correctly and in line with legal accounting rules and professional standards. Guaranteeing tax savings, acting as legal counsel, or performing audits are outside the core professional mandate.

Question 5Legal foundations and professional regulations

Which principle requires a Bilanzbuchhalter to avoid situations where personal or financial interests could compromise professional judgment?

  1. The principle of proportionality
  2. The principle of independence Correct answer.
  3. The principle of confidentiality
  4. The principle of efficiency

Explanation

The independence principle requires professionals to avoid conflicts of interest and to maintain objectivity in their work. Confidentiality concerns protecting client information, while efficiency and proportionality are not professional-conduct principles in this context.

Question 6Legal foundations and professional regulations

A Bilanzbuchhalter learns that a client has recorded fictitious revenue to improve reported results. What is the professionally appropriate response?

  1. Ignore the issue because the client bears responsibility
  2. Report the matter as required and refuse to certify the incorrect statements Correct answer.
  3. Publicly disclose the client's name on social media
  4. Adjust the figures without informing anyone

Explanation

The professional must not participate in or endorse false reporting and must handle the matter according to legal reporting duties and refuse to support incorrect statements. Silent adjustment without disclosure or public shaming are both inappropriate.

Question 7Legal foundations and professional regulations

What does the confidentiality obligation of a Bilanzbuchhalter generally prohibit?

  1. Attending industry conferences
  2. Discussing accounting standards in professional training
  3. Consulting with colleagues about general legal questions
  4. Sharing client data with third parties without a legal basis Correct answer.

Explanation

Confidentiality prohibits disclosing client information to unauthorized third parties unless a legal basis or client consent exists. General professional discussion of standards, consultation on abstract legal questions, and conference attendance do not breach confidentiality.

Question 8Legal foundations and professional regulations

Which document typically establishes the contractual relationship and scope of services between a Bilanzbuchhalter and a client?

  1. The engagement letter (Auftragsschreiben) Correct answer.
  2. The payroll ledger
  3. The annual tax return
  4. The commercial register extract

Explanation

The engagement letter defines the parties, the scope of services, and the terms of cooperation, forming the contractual basis. Tax returns, register extracts, and payroll ledgers are work products or reference documents, not the agreement itself.

Question 9Legal foundations and professional regulations

Under Austrian professional rules, how should a Bilanzbuchhalter handle a client's request to backdate an invoice to shift it into a prior tax year?

  1. Refer the request to the tax office for approval
  2. Refuse, because backdating documents to alter tax periods is improper Correct answer.
  3. Comply if the client signs a waiver
  4. Comply but note it in an internal memo

Explanation

Backdating documents to shift income or expenses between tax periods constitutes improper conduct and must be refused. A client waiver cannot legitimize falsification, and there is no procedure for obtaining advance tax-office approval for such manipulation.

Question 10Legal foundations and professional regulations

Which body is generally competent to impose disciplinary measures on a Bilanzbuchhalter for serious professional misconduct?

  1. The chamber of labour
  2. The commercial court
  3. The competent administrative authority under the BiBuG Correct answer.
  4. The stock exchange supervisory authority

Explanation

Under the BiBuG, the competent administrative authority handles disciplinary and supervisory matters for the profession. Commercial courts, stock exchange authorities, and the chamber of labour do not exercise disciplinary jurisdiction over accountants.

Question 11Legal foundations and professional regulations

What is the role of the professional association for Bilanzbuchhalter regarding continuing education?

  1. It offers and coordinates continuing professional development activities Correct answer.
  2. It issues business licenses
  3. It sets statutory tax rates
  4. It mandates annual re-examination for all members

Explanation

The professional association supports members through continuing education offerings and coordination of professional development. It does not require universal re-examination, set tax rates, or issue business licenses.

Question 12Legal foundations and professional regulations

A Bilanzbuchhalter accepts an engagement in an area where they lack the necessary expertise. What does professional conduct require?

  1. Complete the work but disclaim all responsibility
  2. Delegate the entire task to an unqualified assistant
  3. Proceed and learn on the job without informing the client
  4. Decline or obtain qualified support and inform the client of the limitation Correct answer.

Explanation

Professionals must only accept work they are competent to perform or secure appropriate qualified support, and they should be transparent with the client. Proceeding without competence, delegating to unqualified staff, or blanket disclaimers breach professional standards.

Question 13Legal foundations and professional regulations

Which of the following best describes the professional secrecy obligation's duration under Austrian rules?

  1. It ends when the engagement contract terminates
  2. It ends when the client changes accountants
  3. It continues indefinitely after the engagement ends Correct answer.
  4. It lasts for exactly five years

Explanation

Professional secrecy generally continues beyond the end of the engagement and is not tied to a fixed term or to the client switching providers. The duty protects client information indefinitely unless a legal exception applies.

Question 14Legal foundations and professional regulations

A client offers a Bilanzbuchhalter a success fee contingent on achieving a specific reported profit figure. How should the professional respond?

  1. Accept only if the client is a public company
  2. Accept, as success fees are always permitted
  3. Decline, because such arrangements compromise independence and objectivity Correct answer.
  4. Accept if the fee is paid in cash

Explanation

Fee arrangements contingent on reporting outcomes undermine independence and objectivity and should be declined. Cash payment or the client's legal form does not remove the conflict of interest.

Question 15Legal foundations and professional regulations

Which Austrian law governs the formal requirements for commercial bookkeeping and record retention periods relevant to a Bilanzbuchhalter's work?

  1. The Strafgesetzbuch
  2. The Allgemeines Bürgerliches Gesetzbuch
  3. The Datenschutzgesetz
  4. The Unternehmensgesetzbuch (UGB) Correct answer.

Explanation

The Unternehmensgesetzbuch (UGB) contains the core accounting, bookkeeping, and retention rules for businesses. The civil code, criminal code, and data protection law address other matters and do not set bookkeeping retention periods.

Question 16Legal foundations and professional regulations

A Bilanzbuchhalter discovers that a colleague has been falsifying client records. What is the appropriate professional step?

  1. Confront the client instead of the colleague
  2. Conceal the matter to protect the firm's reputation
  3. Destroy the falsified records
  4. Report the misconduct through the appropriate channels Correct answer.

Explanation

Serious misconduct must be reported through the proper internal or regulatory channels rather than concealed. Confronting the client or destroying records obstructs proper handling and may itself be unlawful.

Question 17Legal foundations and professional regulations

What does the term 'Bilanzbuchhalter' signify under the BiBuG?

  1. A generic job description with no legal protection
  2. A title reserved for tax advisors
  3. A protected professional title subject to statutory requirements Correct answer.
  4. A temporary certification valid for one year

Explanation

The BiBuG establishes Bilanzbuchhalter as a protected professional title with statutory training and registration requirements. It is not a generic or temporary label, and it is distinct from the tax advisor profession.

Question 18Legal foundations and professional regulations

A Bilanzbuchhalter is asked to prepare statements that comply with both Austrian UGB and IFRS. Which approach reflects professional competence?

  1. Determine the applicable framework based on the entity's legal obligations and document the basis Correct answer.
  2. Apply only whichever framework yields higher profit
  3. Mix rules from both frameworks freely
  4. Refuse any engagement involving IFRS

Explanation

The applicable framework depends on the entity's legal status and reporting obligations, and the chosen basis must be documented and applied consistently. Selecting frameworks to maximize profit or mixing rules arbitrarily is improper, and blanket refusal of IFRS work is unprofessional.

Question 19Legal foundations and professional regulations

Which of the following is a key element of the professional duty of care (Sorgfaltspflicht) for a Bilanzbuchhalter?

  1. Maintaining accurate documentation and verifying information Correct answer.
  2. Relying solely on verbal client instructions
  3. Completing work as quickly as possible regardless of accuracy
  4. Delegating all responsibility to the client

Explanation

The duty of care requires accurate documentation, verification of information, and diligent work. Relying only on verbal instructions, shifting responsibility to the client, or prioritizing speed over accuracy all breach this duty.

Question 20Legal foundations and professional regulations

A client instructs a Bilanzbuchhalter to exclude a material liability from the balance sheet to secure a bank loan. What is the correct professional position?

  1. Refuse, as omitting material liabilities misrepresents the financial position Correct answer.
  2. Comply because the client gave a written instruction
  3. Comply only if the amount is small
  4. Comply but disclose it verbally to the bank

Explanation

Omitting material liabilities falsifies the financial statements and misleads users such as banks, so the professional must refuse regardless of written instructions. Verbal side-disclosure or size thresholds do not legitimize misrepresentation.

Question 21Legal foundations and professional regulations

What is the general consequence for a person who uses the protected title 'Bilanzbuchhalter' without meeting the statutory requirements?

  1. Automatic granting of the title after one year
  2. A reduced examination requirement
  3. Potential administrative or legal sanctions for unauthorized use of the title Correct answer.
  4. No consequence, since the title is honorary

Explanation

Using a protected professional title without meeting the statutory requirements can trigger administrative or legal sanctions. The title is not honorary, is not granted automatically, and unauthorized use does not reduce examination requirements.

Question 22Legal foundations and professional regulations

A Bilanzbuchhalter serves two competing clients in the same market. What professional consideration applies?

  1. Potential conflicts of interest must be identified and managed or the engagement declined Correct answer.
  2. The professional must choose the larger client automatically
  3. Competing clients may never be served under any circumstances
  4. There is no issue as long as fees are equal

Explanation

Serving competitors can create conflicts of interest that must be identified, disclosed, and managed, or the engagement should be declined if the conflict cannot be resolved. Equal fees are irrelevant, automatic preference for the larger client is arbitrary, and an absolute prohibition is too broad.

Question 23Legal foundations and professional regulations

Which statement correctly describes the relationship between the BiBuG and the general trade regulations for accounting services?

  1. The two laws are identical in content
  2. The BiBuG applies only to foreign companies
  3. The BiBuG is a lex specialis that governs the profession specifically Correct answer.
  4. The trade regulations fully replace the BiBuG

Explanation

The BiBuG functions as a specialized law (lex specialis) for the BKF profession, prevailing over general trade rules where they overlap. It does not replace the trade regulations entirely, is not limited to foreign companies, and is not identical to them.

Question 24Legal foundations and professional regulations

What does professional independence for a Bilanzbuchhalter primarily require in relation to clients?

  1. Avoiding all contact with client management
  2. Never accepting any payment from clients
  3. Forming judgments free from undue influence by the client Correct answer.
  4. Working only for public-sector clients

Explanation

Independence means forming professional judgments without undue client influence or conflicts of interest. It does not require unpaid work, restriction to public clients, or avoidance of necessary contact with management.

Question 25Legal foundations and professional regulations

A Bilanzbuchhalter receives a request from a tax authority for client records during an audit. How should this be handled?

  1. Refuse all cooperation citing confidentiality
  2. Destroy records not requested in writing
  3. Cooperate within the legal framework while respecting confidentiality limits Correct answer.
  4. Provide only records the client approves

Explanation

Statutory requests from tax authorities must be handled within the legal framework, providing required information while respecting the boundaries of confidentiality. Blanket refusal, client-approval conditions, or destroying records are unlawful.

Question 26Legal foundations and professional regulations

Under the Bilanzbuchhaltungsgesetz (BiBuG), which activity falls within the reserved scope of work for a Bilanzbuchhalter?

  1. Representing clients before the criminal court in tax fraud proceedings
  2. Preparing annual financial statements and ongoing financial accounting for clients Correct answer.
  3. Providing legal advice on the interpretation of collective bargaining agreements
  4. Conducting statutory audits of stock corporations

Explanation

The BiBuG reserves core bookkeeping services, including ongoing financial accounting and the preparation of annual financial statements, to qualified Bilanzbuchhalter. These tasks form the central professional profile regulated by the law. Activities such as statutory audits or court representation are reserved to other professions, notably auditors, lawyers, and tax advisors.

Question 27Legal foundations and professional regulations

A Bilanzbuchhalter is engaged by a new client. Which document should primarily define the scope of services and the contractual relationship?

  1. The client's internal accounting manual
  2. The general fee schedule of the professional association
  3. The engagement letter or written service contract Correct answer.
  4. The Austrian Commercial Code (UGB) in its entirety

Explanation

The contractual relationship between a Bilanzbuchhalter and a client is established through an engagement letter or written service contract. This document specifies the agreed services, responsibilities, and fee arrangements, providing clarity for both parties. Internal manuals, fee schedules, and statutory codes do not individually define the specific engagement.

Question 28Legal foundations and professional regulations

A Bilanzbuchhalter is asked by a client to prepare financial statements that omit a required provision for an ongoing lawsuit. How should the Bilanzbuchhalter respond?

  1. Omit the provision but disclose the omission in a confidential file
  2. Prepare the statements as requested and resign from the engagement afterwards
  3. Omit the provision as instructed because the client bears final responsibility
  4. Refuse to omit the provision and explain the applicable accounting and professional rules Correct answer.

Explanation

Professional standards require a Bilanzbuchhalter to prepare statements in accordance with applicable accounting rules, including necessary provisions. A client instruction cannot justify a material misstatement. The professional should refuse the improper instruction, explain the relevant rules, and document the advice given.

Question 29Legal foundations and professional regulations

Which statement best describes the professional secrecy obligation of a Bilanzbuchhalter under Austrian law?

  1. It may be waived orally by any employee of the client at any time
  2. It ends automatically when the client terminates the contract
  3. It applies only to information explicitly marked as confidential by the client
  4. It covers client information entrusted or made known in the course of the engagement and continues after the engagement ends Correct answer.

Explanation

The professional secrecy obligation protects all client information that becomes known in connection with the engagement, regardless of whether it is marked confidential. The duty continues indefinitely after the engagement ends. Waiver requires a proper basis, typically written consent from the client, not an informal oral statement by an employee.

Question 30Legal foundations and professional regulations

A Bilanzbuchhalter is offered a success fee that is contingent on the client obtaining a bank loan based on the financial statements prepared. Which professional concern does this arrangement primarily raise?

  1. It is acceptable because the client freely agreed to the arrangement
  2. It is prohibited because success fees are always taxable at a higher rate
  3. It is required by the BiBuG for all loan-related engagements
  4. It creates a conflict of interest that may compromise independence and objectivity Correct answer.

Explanation

A success fee tied to a specific outcome creates a financial incentive that can impair the Bilanzbuchhalter's independence and objectivity. Professional rules require that the accountant's judgment not be influenced by such contingent rewards. The concern is ethical and professional, not a matter of tax rates or client consent alone.

Question 31Business administration and accounting

Which accounting statement reports a company's revenues and expenses for a defined period?

  1. Balance sheet
  2. Statement of changes in equity
  3. Statement of cash flows
  4. Income statement Correct answer.

Explanation

The income statement matches revenues earned against the expenses incurred in the same period, producing the profit or loss figure. The balance sheet instead shows assets, liabilities and equity at a single point in time.

Question 32Business administration and accounting

A business buys office supplies for €400 cash. What is the effect on the accounting equation?

  1. Assets decrease and liabilities decrease
  2. Assets increase and equity increases
  3. Liabilities increase and equity decreases
  4. One asset increases and another asset decreases, with total assets unchanged Correct answer.

Explanation

Paying cash for supplies swaps one asset for another: supplies rise by €400 while cash falls by €400. Total assets, liabilities and equity therefore remain unchanged.

Question 33Business administration and accounting

Which of the following is classified as a current liability?

  1. A mortgage repayable in ten years
  2. Retained earnings
  3. A company vehicle
  4. A trade payable due in 45 days Correct answer.

Explanation

Current liabilities are obligations expected to be settled within one year or the normal operating cycle. A trade payable due in 45 days meets that test.

Question 34Business administration and accounting

Under the double-entry system, a debit entry records an increase in which of the following?

  1. Share capital
  2. Cash at bank Correct answer.
  3. Trade payables
  4. Sales revenue

Explanation

Assets such as cash are increased by debits and reduced by credits. Revenue, capital and liabilities behave in the opposite direction.

Question 35Business administration and accounting

What does the matching principle require in preparing financial statements?

  1. Profits are distributed to owners before tax is calculated
  2. Cash receipts are recorded only when the bank confirms them
  3. Assets are valued at their original purchase price
  4. Expenses are recognised in the same period as the revenues they helped to generate Correct answer.

Explanation

The matching principle links expenses to the revenues they helped produce so that the reported profit reflects the period's economic activity. This is why accruals and deferrals are used.

Question 36Business administration and accounting

A company's revenue is €250,000 and its gross profit is €100,000. What is the cost of goods sold?

  1. €350,000
  2. €250,000
  3. €150,000 Correct answer.
  4. €100,000

Explanation

Gross profit equals revenue minus cost of goods sold, so the cost of goods sold is €250,000 − €100,000 = €150,000. Reordering the formula gives this directly.

Question 37Business administration and accounting

Which document is sent by a seller to request payment for goods already delivered?

  1. A purchase order
  2. A credit note
  3. A delivery note
  4. An invoice Correct answer.

Explanation

An invoice states the goods supplied, the amount owed and the payment terms, and it triggers the buyer's obligation to pay. It is normally issued at or after delivery.

Question 38Business administration and accounting

What is the main purpose of an internal control system in a company?

  1. To eliminate the need for an external audit
  2. To guarantee that the business makes a profit
  3. To set the selling prices of products
  4. To safeguard assets and ensure reliable financial reporting Correct answer.

Explanation

Internal controls are the policies and procedures that protect assets, keep records accurate and support compliance with laws. They reduce risk but cannot guarantee profits or replace external audit.

Question 39Business administration and accounting

A trader starts the year with inventory of €20,000 and ends with €30,000. Purchases during the year were €90,000. What is the cost of goods sold?

  1. €80,000 Correct answer.
  2. €100,000
  3. €140,000
  4. €90,000

Explanation

Cost of goods sold equals opening inventory plus purchases minus closing inventory: €20,000 + €90,000 − €30,000 = €80,000. The rise in inventory means some purchases remain unsold.

Question 40Business administration and accounting

A company receives a €1,200 invoice for insurance covering the next twelve months. Under accrual accounting, how should this be treated at the reporting date one month later?

  1. Record €100 as an expense and €1,100 as a prepayment Correct answer.
  2. Ignore the invoice until the policy period ends
  3. Recognise the full €1,200 as an expense immediately
  4. Record €1,100 as an expense and €100 as a prepayment

Explanation

Only the portion of the benefit consumed in the period is expensed; the remainder is carried as a prepaid asset. One month of cover is €100, leaving €1,100 to be released in later periods.

Question 41Business administration and accounting

Which of the following best describes the going concern assumption?

  1. The entity is expected to continue operating for the foreseeable future Correct answer.
  2. All transactions must be recorded at fair value
  3. The entity will be liquidated within the next financial year
  4. The entity must prepare consolidated statements

Explanation

Going concern assumes the business will keep operating long enough to realise assets and settle liabilities in the normal course. If that assumption fails, a different, break-up basis of valuation applies.

Question 42Business administration and accounting

A firm sells goods on credit for €5,000 plus 20% VAT. What amount is recorded in the receivables ledger for this customer?

  1. €6,000 Correct answer.
  2. €6,250
  3. €4,000
  4. €5,000

Explanation

The customer owes the net price plus VAT: €5,000 × 1.20 = €6,000. The VAT portion is a liability to the tax authority, not revenue, but it is still collected through receivables.

Question 43Business administration and accounting

Which cost remains constant in total when the level of production changes within the relevant range?

  1. Fixed rent for the factory Correct answer.
  2. Piece-rate wages
  3. Packaging costs
  4. Direct materials

Explanation

Fixed costs stay the same in total over the relevant range of activity, although they fall per unit as output rises. Variable costs such as materials change in total with volume.

Question 44Business administration and accounting

A product has a selling price of €40, variable cost of €24 per unit and fixed costs of €64,000. What is the break-even quantity in units?

  1. 2,000
  2. 2,667
  3. 4,000 Correct answer.
  4. 1,600

Explanation

Contribution per unit is €40 − €24 = €16. Fixed costs divided by contribution gives €64,000 ÷ €16 = 4,000 units to break even.

Question 45Business administration and accounting

What does a debit balance on a supplier's account in the payables ledger normally indicate?

  1. The company owes the supplier more money
  2. VAT has been charged incorrectly
  3. The supplier has been overpaid or a credit note has been received Correct answer.
  4. The supplier has been deleted from the ledger

Explanation

Payables normally carry credit balances because they represent amounts owed. A debit balance suggests payments or credit notes exceed the invoiced amount, or a posting error.

Question 46Business administration and accounting

A company issues 10,000 shares with a nominal value of €1 for €3 each. How should the €30,000 received be recorded?

  1. €30,000 as revenue in the income statement
  2. €30,000 share capital
  3. €10,000 share capital and €20,000 share premium Correct answer.
  4. €20,000 share capital and €10,000 share premium

Explanation

Only the nominal amount of the shares is credited to share capital; the excess over nominal value is a share premium within equity. Here that is €10,000 capital and €20,000 premium.

Question 47Business administration and accounting

Which ratio best measures a company's ability to pay its short-term obligations as they fall due?

  1. Inventory turnover
  2. Debt-to-equity ratio
  3. The current ratio Correct answer.
  4. Return on equity

Explanation

The current ratio compares current assets with current liabilities and shows short-term liquidity. A ratio comfortably above one generally signals the ability to meet near-term obligations.

Question 48Business administration and accounting

A business records sales of €500,000, of which €80,000 are still outstanding at year end. Opening receivables were €60,000. What is the cash collected from customers during the year?

  1. €500,000
  2. €420,000
  3. €480,000 Correct answer.
  4. €560,000

Explanation

Cash collected equals sales minus the increase in receivables. Receivables rose from €60,000 to €80,000, a €20,000 increase, so collections are €500,000 − €20,000 = €480,000.

Question 49Business administration and accounting

Which of the following is a source document that supports the recording of a cash sale in the books?

  1. The bank statement
  2. A payroll slip
  3. A till roll or receipt Correct answer.
  4. A supplier statement

Explanation

A till roll or receipt provides the initial evidence that a cash sale took place and the amount received. It is the primary record from which the bookkeeping entry is made.

Question 50Business administration and accounting

A company has current assets of €150,000, inventory of €60,000 and current liabilities of €75,000. What is the quick ratio?

  1. 1.50
  2. 0.80
  3. 2.00
  4. 1.20 Correct answer.

Explanation

The quick ratio excludes inventory: (€150,000 − €60,000) ÷ €75,000 = 1.20. This shows liquid assets cover short-term liabilities 1.2 times over.