“200”, Aptitude Test
Questions and Answers for Accountant I – The Office
of Treasury Registrar (OTR).
ABSTRACT
This collection of 200 multiple-choice
questions is designed to prepare public servants for the accountant aptitude
test at the Office of the Treasury Registrar (OTR). The questions reflect the
real structure and difficulty of Public Service online aptitude tests in
Tanzania, where closely related options test deep understanding, analytical
ability, and accuracy.
The set covers core areas such as
financial recording, bank reconciliation, receivables and Non-Tax Revenue
management, asset register control, cost analysis, liquidity monitoring,
investment oversight, performance contracts, and financial statement interpretation.
It integrates accrual-based accounting concepts and practical public-sector
scenarios relevant to OTR responsibilities.
This resource aims to strengthen technical
competence, critical thinking, and confidence for candidates seeking promotion
or transfer within the public service.
Prepared by: Accountants
0628729934.
Date: September 1, 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 Accountant I – The Office of Treasury Registrar (OTR) interview.
ALL
QUESTIONS TOGETHER.
1. An amount received for
Non-Tax Revenue (NTR) was recorded as a liability instead of income. What is
the immediate effect on financial statements?
A. Assets overstated and income
understated
B. Liabilities overstated and income understated
C. Assets understated and equity overstated
D. Income overstated and liabilities understated
Answer: B
Rationale: Recording revenue as a
liability increases liabilities while failing to recognize income, which
results in understated income for the period. Assets remain correct if cash was
properly recorded, but classification error causes liabilities to be overstated
and surplus understated.
2. During bank reconciliation,
a deposit recorded in the cashbook does not yet appear on the bank statement at
month end. How should it be treated?
A. Outstanding payment
B. Bank error
C. Deposit in transit
D. Cashbook error
Answer: C
Rationale:
A deposit recorded in the cashbook but not yet reflected by the bank is a
deposit in transit. It increases the bank balance in reconciliation because it
will appear in the bank statement in the following period.
3. If depreciation is not
recorded for the year, which statement is most accurate?
A. Assets and expenses are
overstated
B. Assets and surplus are overstated
C. Expenses and liabilities understated
D. Equity and liabilities overstated
Answer: B
Rationale: Failure to record
depreciation means assets remain at higher values than they should and expenses
are understated. This leads to overstated surplus and consequently overstated
equity.
4. An Accountant identifies
repeated overtime costs that exceed budget without productivity increase. The
most appropriate initial action is:
A. Increase the budget allocation
B. Eliminate overtime immediately
C. Analyze root cause of overtime trend
D. Report staff for misconduct
Answer: C
Rationale: Before making
adjustments or disciplinary decisions, proper financial management requires
analysis of the underlying cause of the overtime trend to determine whether
inefficiency, poor scheduling, or operational demand is responsible.
5. A receivable has remained
outstanding beyond the agreed credit period with no communication from the
entity. The most prudent accounting action is to:
A. Assess recoverability and
consider impairment
B. Write it off immediately
C. Extend credit indefinitely
D. Reclassify as revenue
Answer: A
Rationale: Prudence requires
assessing whether the receivable is recoverable. If there is doubt, impairment
should be recognized. Immediate write-off without assessment would be
premature.
6. In maintaining a
Non-Current Assets Register, which omission creates the highest audit risk?
A. Missing asset serial numbers
B. Failure to update asset location
C. Not recording acquisition date
D. Absence of accumulated depreciation
Answer: D
Rationale: Accumulated
depreciation is critical for determining net book value. Its absence affects
financial statement accuracy, asset valuation, and audit reliability more
significantly than descriptive omissions.
7. Liquidity position of a
Public Investment Fund is best assessed using:
A. Total asset value
B. Current ratio and cash flow trends
C. Historical surplus levels
D. Dividend payout ratio
Answer: B
Rationale: Liquidity measures
short-term ability to meet obligations, best assessed through current ratio and
analysis of cash flow trends rather than total assets or historical surplus.
8. If an expense is recorded
twice in the ledger, what is the likely effect before correction?
A. Assets overstated
B. Surplus overstated
C. Liabilities understated
D. Surplus understated
Answer: D
Rationale: Double-recording an
expense increases total expenses, which reduces surplus. Therefore, surplus is
understated while liabilities and assets may remain unaffected unless cash is
involved.
9. An investment fund records
daily cash flows but fails to reconcile weekly. The primary risk is:
A. Budget deficit
B. Undetected errors or fraud
C. Reduced dividend policy accuracy
D. Increased tax exposure
Answer: B
Rationale: Without regular
reconciliation, discrepancies, omissions, or fraud may go unnoticed.
Reconciliation is a control mechanism to ensure accuracy and accountability.
10. When tracking interest
rate movements, the most relevant objective for OTR is to:
A. Adjust employee salaries
B. Reduce asset verification
C. Increase operational expenses
D. Forecast investment income trends
Answer: D
Rationale: Monitoring interest
rates helps anticipate changes in investment returns, influencing financial
planning and reporting for public investment funds.
11. If revenue is received but
not recorded, what is the effect?
A. Assets and surplus understated
B. Liabilities overstated
C. Expenses overstated
D. Equity overstated
Answer: A
Rationale: Failure to record
received revenue understates both cash (asset) and income, leading to
understated surplus and equity.
12. An Accountant observes
that material costs increase while production remains constant. The most
logical explanation is:
A. Efficiency improvement
B. Inflation or wastage
C. Revenue growth
D. Reduced procurement cycle
Answer: B
Rationale: When output is
constant but material cost increases, likely causes include price inflation or
inefficiency/wastage rather than improved productivity.
13. In preparing management
accounts, the primary purpose is to:
A. Satisfy statutory audit
requirements
B. Meet tax compliance obligations
C. Support internal decision-making
D. Replace financial statements
Answer: C
Rationale: Management accounts
are prepared to support internal planning, performance monitoring, and
strategic decision-making rather than external compliance.
14. During physical asset
verification, an asset in the register cannot be located. The first step should
be to:
A. Remove it from the register
B. Charge the responsible officer
C. Investigate discrepancy
D. Ignore minor differences
Answer: C
Rationale: Before adjustments,
proper procedure requires investigation to determine whether it was relocated,
disposed, or recorded incorrectly.
15. If dividend policy is
overly aggressive, the likely risk is:
A. Reduced surplus
B. Liquidity strain
C. Increased asset growth
D. Improved credit rating
Answer: B
Rationale: High dividend payouts
reduce retained funds and may strain liquidity, affecting operational
sustainability.
16. A bank statement shows
charges not recorded in the cashbook. Correct treatment is to:
A. Adjust bank statement
B. Ignore small charges
C. Record them in cashbook
D. Reverse prior entries
Answer: C
Rationale: Bank charges appearing
only on the bank statement must be recorded in the cashbook to ensure accurate
reconciliation.
17. When analyzing cost
information, the most meaningful comparison is between:
A. Budgeted and actual costs
B. Revenue and liabilities
C. Assets and equity
D. Cash and receivables
Answer: A
Rationale: Comparing actual costs
to budget identifies variances and efficiency gaps, supporting managerial
control.
18. If excess funds remain
idle without investment, the opportunity cost is:
A. Increased liabilities
B. Foregone potential returns
C. Higher operating expenses
D. Reduced depreciation
Answer: B
Rationale: Idle funds represent
lost earning potential, meaning the entity foregoes possible returns.
19. Misclassification of
capital expenditure as expense results in:
A. Understated assets
B. Overstated liabilities
C. Understated expenses
D. Overstated surplus
Answer: A
Rationale: Treating capital
expenditure as expense removes it from assets, understating asset value and
overstating expenses.
20. Tracking NTR trends over
time primarily helps to:
A. Reduce depreciation
B. Adjust equity accounts
C. Eliminate receivables
D. Predict recurring revenue patterns
Answer: D
Rationale: Trend analysis allows
forecasting of revenue flows and financial planning.
21. Failure to record accrued
expenses at year end will result in:
A. Surplus overstated and liabilities understated
B. Assets overstated and income understated
C. Expenses overstated and equity understated
D. Cash understated and liabilities overstated
Answer: A
Rationale:
Accrued expenses represent obligations incurred but not yet paid. Omitting them
understates liabilities and expenses, which in turn overstates surplus.
22. The most reliable
indicator of short-term solvency is:
A. Debt-to-equity ratio
B. Return on assets
C. Current ratio
D. Dividend yield
Answer: C
Rationale: The current ratio
measures ability to meet short-term obligations using current assets.
23. If liquidity register is
updated monthly instead of daily, the major limitation is:
A. Reduced surplus
B. Delayed risk detection
C. Increased depreciation
D. Higher audit fees
Answer: B
Rationale: Infrequent updates
delay identification of liquidity pressures and reduce responsiveness.
24. A performance report shows
increasing revenue but declining cash flow. The most plausible explanation is:
A. Reduced liabilities
B. High depreciation
C. Increase in receivables
D. Improved efficiency
Answer: C
Rationale: Revenue growth with
declining cash flow often indicates that receivables are increasing, meaning
revenue is recognized but cash not yet collected.
25. When reviewing financial
market trends, the most relevant factor for investment monitoring is:
A. Exchange rate and interest
rate movements
B. Staff recruitment levels
C. Office rental costs
D. Vehicle depreciation rate
Answer: A
Rationale: Exchange rate and
interest rate changes directly affect investment valuations, returns, and
financial planning for investment funds.
26. A payment to a supplier
was recorded in the cashbook but omitted from the ledger. Before correction,
what is the effect?
A. Cash correct but liabilities
overstated
B. Cash understated and liabilities overstated
C. Cash overstated and expenses understated
D. Expenses overstated and liabilities understated
Answer: A
Rationale: The cashbook correctly
reduces cash, but the ledger still shows the payable as unpaid. This overstates
liabilities while cash remains correct.
27. An entity records revenue
when cash is received instead of when earned. This violates which principle?
A. Consistency
B. Prudence
C. Accrual
D. Materiality
Answer: C
Rationale: Under the accrual
basis, revenue should be recognized when earned, not when cash is received.
Recording only on receipt misstates financial performance across periods.
28. If a fixed asset is
disposed but remains in the asset register, the most likely consequence is:
A. Understated revenue
B. Understated expenses
C. Overstated liabilities
D. Overstated assets and depreciation
Answer: D
Rationale: Keeping disposed
assets in the register overstates total assets and may continue charging
depreciation on an asset that no longer exists, distorting financial
statements.
29. A variance analysis shows labor
costs significantly below budget. Before concluding efficiency, the accountant
should first confirm:
A. Revenue levels
B. Production output levels
C. Interest rates
D. Asset values
Answer: B
Rationale: Lower labour cost
could reflect reduced output rather than efficiency. Output must be examined
before concluding improved cost control.
30. An unpresented cheque at
month end will cause the bank balance to be:
A. Higher than cashbook
B. Lower than cashbook
C. Equal to cashbook
D. Zero
Answer: A
Rationale:
The cheque has reduced the cashbook but not yet the bank. Therefore, the bank
balance is higher.
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