“200”, Aptitude Test Questions and Answers for Accounts Officer II – MDA & LGA.
This question bank contains 200 accounting
and public finance questions covering financial statements, budgeting, payroll,
revenue and expenditure recognition, internal controls, depreciation, fund
accounting, and auditing. Each question includes a rationale, promoting
understanding of core concepts, practical problem-solving, and application in
both public and private sector accounting.
Prepared by: Accounts Officer
Compiled by
Johnson Yesaya Mgelwa.
A lawyer stationed in Dar-es-salaam.
0628729934.
Date: July 15, 2025
Dear applicants,
This collection of questions and answers
has been carefully prepared to help all of you to understand the key areas
tested during the interview. The goal is to provide a useful, and practical
study guide so you can all perform confidently and fairly in the selection
process. I wish you the best of luck, and may this resource support you in
achieving success!
Warm regards,
Johnson Yesaya Mgelwa
For Personal Use by Applicants Preparing
for MDA and LGA Accounts Officer II interview at Public Service Recruitment Service.
ALL
QUESTIONS ARE COMPILED TOGETHER.
1. The main objective of preparing a bank reconciliation statement
is to:
A. Detect frauds and errors B. Update the cashbook C. Identify differences
between bank and cashbook balances D. Record all bank charges
Answer: C
Rationale: A bank reconciliation statement compares the organization’s cashbook with the
bank statement to identify timing and posting differences. Its purpose is to
explain discrepancies arising from unpresented cheques, deposits in transit, or
bank charges, ensuring accurate reporting of cash balances.
2. Which accounting basis is mostly applied in Tanzania’s public
sector under IPSAS?
A. Cash basis B. Accrual basis C. Modified cash basis D. Modified accrual basis
Answer: A
Rationale: Tanzania’s central and local governments primarily use the IPSAS Cash Basis for
financial reporting, though gradual migration to accrual IPSAS is ongoing.
Under the cash basis, revenues and expenditures are recognized only when cash
is received or paid.
3. The document used to authorize payment of government expenditure
is known as:
A. Payment voucher B. Local purchase order C. Expenditure return D. Pay slip
Answer: A
Rationale: A payment voucher is an official document authorizing payment for goods or
services in government accounting systems such as EPICOR. It records details of
the transaction, approval, and supporting documents, forming the audit trail
for expenditure.
4. Who is responsible for auditing the accounts of all public
authorities in Tanzania?
A. Accountant General B. Internal Auditor General C. Controller and Auditor
General D. Permanent Secretary of Finance
Answer: C
Rationale: The Controller and Auditor General (CAG), under Article 143 of the
Constitution, is mandated to audit and report on the accounts of all public
authorities and other bodies funded by public money to ensure accountability
and transparency.
5. In accounting, debit represents:
A. Increase in liabilities B. Decrease in assets C. Increase in assets D.
Increase in revenue
Answer: C
Rationale: A debit entry records an increase in assets or expenses and a decrease in
liabilities, income, or equity. This follows the double-entry principle where
“debit what comes in” and “credit what goes out.”
6. Which law governs financial management and control of public
funds in Tanzania?
A. Public Finance Act, 2001 B. Local Government Finances Act, 1982 C. Public
Procurement Act, 2011 D. Public Audit Act, 2008
Answer: A
Rationale: The Public Finance Act, 2001 (as amended) provides the framework for
management, control, and accountability of public funds in Tanzania, detailing
roles of accounting officers, the CAG, and the Treasury.
7. A trial balance helps to:
A. Prepare financial statements B. Detect all types of errors C. Prove
arithmetical accuracy of ledger accounts D. Determine net profit
Answer: C
Rationale: A trial balance tests the mathematical accuracy of ledger accounts by ensuring
total debits equal total credits. However, it cannot detect errors of omission
or compensating errors.
8. Which of the following is not a capital expenditure?
A. Purchase of office computers B. Construction of office building C. Salaries
of permanent employees D. Purchase of land
Answer: C
Rationale: Salaries represent recurrent expenditure since they are regular operational costs. Capital expenditure involves acquisition or improvement of long-term assets such as buildings, machinery, or land.
9. The EPICOR system used by MDAs and LGAs mainly serves to:
A. Record staff attendance B. Manage financial transactions C. Conduct
e-procurement D. Monitor public projects
Answer: B
Rationale: EPICOR is an Integrated Financial Management Information System (IFMIS) adopted
by the Government of Tanzania to process and control financial transactions,
ensuring accuracy, efficiency, and real-time monitoring of public resources.
10. Which among the following errors can be detected by trial
balance?
A. Error of omission B. Error of principle C. Error of commission D.
Compensating error
Answer: C
Rationale: An error of commission occurs when an entry is posted to the wrong account of
the same class (e.g., wrong debtor). Such an error affects only one side of the
ledger and causes trial balance disagreement, making it detectable.
11. A government department bought stationery worth TZS 300,000 but
paid only TZS 200,000. The balance should appear as:
A. Expense B. Liability C. Asset D. Provision
Answer: B
Rationale: The unpaid TZS 100,000 represents an outstanding obligation to the supplier,
recorded as a liability (creditors or accounts payable) in the statement of
financial position.
12. If total assets are TZS 20,000,000 and liabilities are TZS
8,000,000, what is the equity?
A. 12,000,000 B. 28,000,000 C. 8,000,000 D. 10,000,000
Answer: A
Rationale: By the accounting equation, Equity = Assets – Liabilities = 20,000,000 –
8,000,000 = 12,000,000, representing the owner’s residual interest in the
assets.
13. If trade receivables are TZS 2,000,000 and doubtful debts
provision is TZS 100,000, the net realizable value is:
A. 1,900,000 B. 2,100,000 C. 2,000,000 D. 1,800,000
Answer: A
Rationale: The net realizable value equals total receivables minus provision for doubtful
debts (2,000,000 – 100,000 = 1,900,000). It represents the amount expected to
be collected.
14. A company sold goods for TZS 1,000,000 plus 18% VAT. The total
amount to be received is:
A. 1,180,000 B. 1,000,000 C. 180,000 D. 820,000
Answer: A
Rationale: Output VAT is added to the selling price. 18% of 1,000,000 = 180,000, hence
total invoice value = 1,000,000 + 180,000 = 1,180,000.
15. If the exchange rate is TZS 2,600 per USD, how many dollars will
you get for TZS 1,300,000?
A. 500 B. 650 C. 520 D. 450
Answer: A
Rationale: USD = 1,300,000 ÷ 2,600 = 500. The question tests accuracy with unit
conversions common in donor fund transactions.
16. A cashier receives TZS 3,200,000 and deposits only TZS 2,800,000
in the bank. The balance of TZS 400,000 should be recorded as:
A. Cash in hand B. Revenue C. Expense D. Suspense account
Answer: A
Rationale: The unbanked amount represents cash still on hand, not yet deposited. It is
treated as an asset under cash in hand until it’s later banked.
17. If salaries payable at the beginning of the year were TZS
600,000, at the end TZS 400,000, and cash paid during the year TZS 5,000,000 —
the expense to report is:
A. 5,000,000 B. 5,200,000 C. 4,800,000 D. 5,400,000
Answer: C
Rationale: Opening liability (600,000) decreases and closing (400,000) is lower, meaning
200,000 less owed. Hence, expense = 5,000,000 – 200,000 = 4,800,000 as the
actual expense incurred during the period.
18. A supplier invoice shows: goods = 800,000; VAT = 18%; discount =
2%. What is the net payable amount?
A. 942,400 B. 960,000 C. 784,000 D. 940,000
Answer: A
Rationale: Total = 800,000 + 144,000 (VAT) = 944,000 – 1.6% discount (944,000 × 0.016) = ≈
942,400. Shows order of applying tax and discount.
19. Depreciation of assets is recorded to:
A. Maintain asset value B. Allocate cost over useful life C. Increase cash flow D.
Determine market value
Answer: B
Rationale: Depreciation systematically allocates the cost of a tangible asset over its
useful life, matching expense with revenue generation and ensuring accurate
representation of asset value in financial statements.
20. Which among the following represents a liability?
A. Cash in hand B. Debtors C. Creditors D. Prepaid expenses
Answer: C
Rationale: Creditors represent amounts owed by the organization to suppliers or other
parties, making them current liabilities expected to be settled within a short
period.
21. In government accounting, the term “vote” refers to:
A. An election decision B. An item of approved expenditure C. Cash held in
imprest D. Loan advanced to staff
Answer: B
Rationale: A “vote” in public financial management represents a specific line or item of
approved expenditure in the budget, authorized for spending under designated
heads or sub-heads.
22. Which of the following best defines working capital?
A. Total assets minus total liabilities B. Current assets minus current
liabilities C. Fixed assets minus current liabilities D. Cash plus inventory
Answer: B
Rationale: Working capital measures an organization’s liquidity and ability to meet
short-term obligations. It is calculated by subtracting current liabilities
from current assets, indicating operational efficiency.
23. Who is the accounting officer in a Ministry according to
Tanzanian public finance laws?
A. Minister B. Director of Finance C. Permanent Secretary D. Internal Auditor
Answer: C
Rationale: Under the Public Finance Act, the Permanent Secretary (PS) is the designated
accounting officer for a ministry, responsible for proper management and
control of public resources and compliance with financial regulations.
24. A revenue collected but not yet deposited to the bank should be
recorded as:
A. Liability B. Expense C. Asset D. Deferred revenue
Answer: C
Rationale: Cash collected but not yet banked represents an asset since it’s still in the
entity’s custody and expected to increase financial resources once deposited.
25. Which of the following is an example of a non-current asset?
A. Office stationery B. Furniture and fittings C. Inventory D. Bank balance
Answer: B
Rationale: Non-current assets are long-term resources used for operations and not intended
for resale, such as furniture, buildings, and equipment. They provide economic
benefits beyond one financial period.
26. When reconciling the cashbook, an uncredited deposit in the bank
statement means:
A. Bank has recorded the deposit, but cashbook has not B. Cashbook recorded
deposit, but bank has not C. Both cashbook and bank recorded the deposit D.
Deposit was cancelled by the bank
Answer: B
Rationale: An uncredited deposit occurs when an organization records a deposit in its
cashbook, but the bank has not yet processed it. It creates a temporary
difference between the cashbook and bank statement balances until credited.
27. In public sector accounting, the vote book is used primarily to:
A. Record government revenues B. Track budget allocations and expenditures C.
Record cash receipts D. Approve payments to suppliers
Answer: B
Rationale: Vote books are maintained by accounting officers in ministries or councils to
monitor approved estimates, commitments, and actual expenditure, ensuring no
spending exceeds budgeted amounts for each vote.
28. A payment made without supporting documents in a public office
violates the principle of:
A. Accountability B. Transparency C. Completeness D. Validity
Answer: D
Rationale: The validity principle ensures that every payment or transaction must be
supported by authorized and verifiable documentation. Payments lacking
documentation breach financial regulations and risk audit queries.
29. Which of the following errors will not affect the agreement of a
trial balance?
A. Error of omission B. Error of casting C. Error of commission D. Posting to
wrong side of ledger
Answer: A
Rationale: An error of omission occurs when a transaction is completely left out of the
books, leaving both debit and credit sides unaffected. Therefore, the trial
balance still agrees despite the omission.
30. According to the Local Government Finances Act, 1982, local
authorities derive their main revenues from:
A. International grants B. Central government subsidies, local taxes and fees C.
Private investors D. Internal borrowing
Answer: B
Rationale: LGAs receive funds through central government transfers, local taxes, service fees, and licenses. This mix supports decentralization and fiscal autonomy, as outlined in the Local Government Finances Act.
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