“200”, Aptitude Test Questions and Answers for Accountant Grade II – MDA & LGA.
ABSTRACT
This material provides 200 realistic
multiple-choice questions designed to prepare candidates for the Mhasibu
Daraja la II (Accountant Grade II) LGA & MDA. The questions focus on
practical government accounting, bank reconciliation, revenue handling,
internal controls, and error detection. Each question includes a clear answer
and rationale to strengthen understanding and analytical skills. The set is structured
to reflect the tricky, scenario-based style of actual Public Service exams,
helping candidates build confidence, accuracy, and readiness for the
recruitment assessment.
Prepared by: Accounts Officer.
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 Accountant Grade II interview at Public Service Recruitment Service.
ALL
QUESTIONS ARE COMPILED TOGETHER.
1. A revenue collector prepares a daily collection report showing TZS 2,450,000, but only TZS 2,400,000 is banked. No explanation is provided. What is the most appropriate immediate accounting action?
A. Record the banked amount only and ignore the variance
B. Record full collection and treat difference as expense
C. Record full collection and recognize a receivable from collector
D. Record banked amount and adjust next day collections
Answer: C
Rationale: The full amount collected must be recognized as revenue, and any
difference between reported collections and banked funds should be treated as
an outstanding amount due from the collector until investigated. This maintains
accuracy and accountability while preserving the audit trail.
2. During bank reconciliation, a payment recorded in the cashbook does not appear on the bank statement because it has not yet cleared. How should it be treated?
A. Deduct it from the bank
statement balance
B. Deduct it from the cashbook balance
C. Ignore it until next month
D. Add it to the cashbook balance
Answer: A
Rationale: It is an outstanding payment; it reduces the bank balance once
cleared, so it is deducted on the bank side during reconciliation.
3. A payment voucher is approved but later found to lack supporting documents. What is the key control weakness?
A. Lack of bank reconciliation
B. Weak authorization procedures
C. Failure in document verification
D. Incorrect ledger posting
Answer: C
Rationale: Payment should only occur after verifying supporting documentation.
Approval without proper documentation indicates a breakdown in verification
controls, exposing the organization to unauthorized or unsupported payments.
4. A government office delays banking of revenue for three days. Which risk is most directly increased?
A. Overstatement of expenses
B. Loss or misuse of cash
C. Double counting revenue
D. Incorrect classification
Answer: B
Rationale: Delayed banking increases the risk of theft, misplacement, or misuse
of cash. Timely banking is a key internal control to safeguard public funds and
maintain accountability.
5. If a bank charges a fee directly on the account and it is not yet recorded in the cashbook, what adjustment is required?
A. Debit bank charges expense, credit cashbook
B. Credit bank charges expense, debit cashbook
C. Debit revenue, credit bank
D. No adjustment until month end
Answer: A
Rationale: Bank charges reduce the bank balance and must be recorded in the
cashbook by debiting bank charges expense and crediting the bank/cashbook
balance to reflect the deduction.
6. An accountant notices that revenue is consistently recorded only after banking. What principle is most affected?
A. Matching principle
B. Prudence
C. Completeness
D. Consistency
Answer: C
Rationale: Revenue should be recorded when collected, not only when banked.
Recording only banked amounts risks omitting collected but unbanked revenue,
violating the completeness principle.
7. A payment is recorded twice in the cashbook but once in the bank statement. How will this affect reconciliation?
A. Cashbook balance overstated
B. Bank balance understated
C. Cashbook balance understated
D. No effect
Answer: C
Rationale:
Double-recording a payment deducts cash twice in the books, making the cashbook
balance understated compared to the bank statement.
8. A supervisor signs blank payment vouchers for future use. What is the primary risk?
A. Delay in processing
B. Bank errors
C. Overstatement of assets
D. Unauthorized payments
Answer: D
Rationale: Signing blank vouchers removes control over authorization and may
allow unauthorized or fraudulent payments, a serious internal control failure.
9. If revenue collected on 30 June is banked on 2 July, in which period should it be recorded?
A. July
B. June
C. Either month
D. Next financial year
Answer: B
Rationale: Revenue should be recognized when collected, not when banked. Since
collection occurred in June, it must be recorded in that period to reflect
accurate reporting.
10. An accountant finds that the bank statement shows a higher balance than the cashbook.
Assume there are no unrecorded receipts or direct bank deposits.
Which is the most likely reason?
A. Outstanding payments
B. Unrecorded receipts
C. Bank errors only
D. Double recording of payments
Answer: A
Rationale:
If the bank statement balance is higher than the cashbook and there are no
unrecorded receipts, the most likely explanation is that some payments have
already been recorded in the cashbook but have not yet cleared the bank. These
are outstanding cheques/payments, which reduce the cashbook balance
immediately but appear later on the bank statement.
11. Which action best strengthens control over government revenue?
A. One officer collects and banks
B. Separate collection and banking duties
C. Delay recording until month end
D. Allow collectors to reconcile bank
Answer: B
Rationale: Segregation of duties reduces risk of fraud. Different officers
should collect, record, and bank revenue to ensure independent checks.
12. An expense is paid but not recorded. Which financial statement is affected immediately?
A. Statement of financial position only
B. Statement of revenue and expenditure only
C. Both statements
D. Neither
Answer: C
Rationale: An unrecorded expense understates expenses and overstated
cash/assets, affecting both the statement of revenue and expenditure and the
financial position.
13. A cheque issued remains unpresented for two months. How is it treated in reconciliation?
A. Ignore permanently
B. Add to bank balance
C. Write off immediately
D. Deduct from bank balance
Answer: D
Rationale: An unpresented cheque is an outstanding payment and must be deducted
from the bank balance during reconciliation until it clears.
14. What is the main purpose of preparing a bank reconciliation?
A. Detect fraud only
B. Compare revenue and expenses
C. Verify agreement of records
D. Prepare financial statements
Answer: C
Rationale: Bank reconciliation ensures that the cashbook and bank statement
agree after adjusting for timing differences and errors, improving accuracy and
control.
15. If supporting documents for an expense are missing, the accountant should first:
A. Seek clarification and evidence
B. Record expense anyway
C. Cancel the payment immediately
D. Charge the officer personally
Answer: A
Rationale: Before taking corrective action, the accountant must verify facts
and obtain supporting evidence. Proper investigation ensures fair and accurate
treatment.
16. An error that overstates revenue will most likely lead to:
A. Understated surplus
B. Overstated surplus
C. No effect
D. Understated assets
Answer: B
Rationale: Overstated revenue increases the reported surplus, giving a
misleading impression of financial performance.
17. Which document authorizes payment before cash is released?
A. Bank statement
B. Receipt
C. Payment voucher
D. Ledger
Answer: C
Rationale: A payment voucher provides evidence of approval and authorization
before funds are disbursed, forming a key control document.
18. If revenue is recorded but not banked, which balance is overstated?
A. Bank
B. Cash on hand
C. Expenses
D. Liabilities
Answer: B
Rationale: Recording revenue without banking increases cash on hand in records,
overstating the physical cash position until banking occurs.
19. An accountant reviewing payment vouchers should primarily confirm:
A. Staff attendance
B. Budget approval only
C. Office supplies
D. Supporting documents
Answer: D
Rationale: Verification of supporting documents ensures payments are
legitimate, accurate, and authorized, strengthening financial control.
20. If the cashbook balance is lower than the bank statement, what may be the cause?
A. Unrecorded receipts
B. Outstanding deposits
C. Bank charges recorded twice
D. Double payment
Answer: A
Rationale: Unrecorded receipts increase the bank balance but not the cashbook
balance, making the bank balance appear higher.
21. Which action improves accuracy of financial reports most?
A. Recording monthly only
B. Daily posting
C. Ignoring minor errors
D. Delaying adjustments
Answer: B
Rationale: Daily posting ensures transactions are captured promptly, reducing
omissions and improving accuracy of financial information.
22. An accountant discovers an overpayment after accounts are closed. What should be done?
A. Ignore it
B. Adjust in next period
C. Recover and adjust records
D. Write off immediately
Answer: C
Rationale: Overpayments should be recovered where possible and records
corrected to reflect accurate financial position and accountability.
23. The primary purpose of reviewing payment vouchers is to ensure:
A. Speed
B. Accuracy and authorization
C. Staff performance
D. Budget increase
Answer: B
Rationale: Reviewing vouchers ensures payments are accurate, properly
authorized, and supported by documentation, preventing misuse of funds.
24. If receipts are issued but not recorded, what risk arises?
A. Overstatement of revenue
B. No effect
C. Overstatement of expenses
D. Understatement of revenue
Answer: D
Rationale: Failure to record issued receipts leads to understated revenue and
possible misappropriation of funds.
25. Which control best ensures revenue collected is fully banked?
A. Same-day banking
B. Weekly banking
C. Monthly reconciliation only
D. Supervisor trust
Answer: A
Rationale: Banking collections on the same day minimizes risk of loss or misuse
and ensures accurate and timely recording of government revenue.
26. A cashier records TZS 980,000 collected while the receipt book shows TZS 1,080,000 issued. Which accounting treatment is most appropriate before investigation is concluded?
A. Record TZS 980,000 only
B. Record TZS 1,080,000 and recognize shortage
C. Record nothing until resolved
D. Record difference as expense
Answer: B
Rationale: The full amount per issued receipts must be recognized as revenue.
Any shortage should be recorded as a receivable or shortage pending
investigation to maintain completeness and accountability.
27. A bank reconciliation shows a credit transfer received by the bank but not yet recorded in the cashbook. What adjustment is required?
A. Debit bank charges
B. Credit cashbook
C. Debit cashbook
D. Ignore until next month
Answer: C
Rationale: A credit transfer increases the bank balance and must be recorded by
debiting the bank/cashbook and crediting the appropriate revenue or receivable
account.
28. A payment voucher is approved within budget but for goods not received. Which control failed primarily?
A. Budget control
B. Verification of delivery
C. Authorization
D. Posting accuracy
Answer: B
Rationale: Payment should only be processed after confirming goods or services
have been received. Approval without verification indicates failure of the
delivery confirmation control.
29. During reconciliation, deposits in transit are added to which balance?
A. Cashbook balance
B. Revenue balance
C. Expense balance
D. Bank balance
Answer: D
Rationale: Deposits in transit are recorded in the cashbook but not yet
reflected in the bank statement; therefore, they are added to the bank balance
during reconciliation.
30. If revenue is intentionally recorded in the wrong period to meet targets, which principle is violated most?
A. Prudence
B. Consistency
C. Accrual
D. Matching
Answer: C
Rationale: Recording revenue in the wrong period violates the accrual
principle, which requires transactions to be recorded in the period in which
they occur.
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