“200”, Oral interview Q
uestions and
Answers for Accounts Officer II – MDA & LGA.
ABSTRACT
This collection presents 200 oral
interview questions and answers in accounting and public finance, covering key
areas such as financial statements, budgeting, payroll, revenue and expenditure
recognition, internal controls, depreciation, fund accounting, and auditing.
The questions are structured in a practical, interview-focused style to reflect
real PSRS oral panels, helping candidates not only understand the concepts but
also express them clearly and confidently. Each answer is designed to build
deeper understanding, improve reasoning, and prepare candidates to respond
effectively under pressure, making this guide a reliable resource for success
in Accounts Officer II oral interviews.
Prepared by: Accounts Officer
Compiled by Johnson Yesaya Mgelwa.
A lawyer stationed in Dar-es-salaam.
0628729934.
Date: April 06, 2026
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 oral interview at Public Service
Recruitment Service.
ALL
QUESTIONS ARE COMPILED TOGETHER.
1.
As an Accounts Officer, you notice a difference between the cashbook balance
and the bank statement. What could cause this difference, and how would you
resolve it?
Answer:
Differences between the cashbook and bank statement commonly arise due to
timing and recording differences such as unpresented cheques, deposits in
transit, bank charges or direct debits not yet recorded in the cashbook, and
direct credits made by the bank.
To resolve this, I would prepare a bank
reconciliation statement by comparing both records, identifying all reconciling
items, and making necessary adjustments to the cashbook where required. This
process ensures that the correct cash position is established and strengthens
financial control by detecting possible errors or irregularities.
2.
Which accounting basis is currently applied in Tanzania’s public sector, and
why is there a shift toward another basis?
Answer:
Tanzania’s public sector primarily applies the IPSAS Cash Basis, where
transactions are recognized only when cash is received or paid. This approach
is simple and focuses on cash management.
However, there is an ongoing shift toward
the Accrual Basis to enhance transparency and accountability by recognizing
assets, liabilities, revenues, and expenses when they occur. This provides a
more complete and realistic picture of the government’s financial position and
obligations.
3.
Before making any payment in a government institution, what document is
required and what is its purpose?
Answer:
A payment voucher is required before any payment is made. It serves as an
official authorization for payment and contains key details such as the payee,
amount, purpose of payment, supporting documents like invoices or contracts,
and approval signatures.
It is important because it provides an
audit trail, ensures that payments are properly verified and approved, and
helps prevent unauthorized or fraudulent transactions.
4.
Explain the role of the Controller and Auditor General in Tanzania.
Answer:
The Controller and Auditor General is responsible for auditing all public
authorities and institutions that use public funds. The role includes examining
financial records, assessing compliance with laws and regulations, and
reporting findings on how public resources have been utilized.
This function is essential in promoting
accountability, transparency, and good governance, as it provides independent
assurance to the government and the public that funds are properly managed.
5.
If a trial balance agrees, does it mean there are no errors in the accounts?
Explain.
Answer:
No, the agreement of a trial balance only confirms that the total debits equal
total credits, indicating arithmetical accuracy. However, it does not guarantee
that all records are correct.
Errors such as omission, errors of
principle, and compensating errors may still exist because they do not affect
the equality of debits and credits. Therefore, further checks and
reconciliations are necessary to ensure the accuracy and completeness of accounts.
6.
Distinguish between capital expenditure and recurrent expenditure in the
public sector, and explain why this distinction matters.
Answer:
Capital expenditure refers to spending on acquiring or improving long-term
assets such as buildings, equipment, and infrastructure, which provide benefits
over multiple periods.
Recurrent expenditure relates to routine
operational costs such as salaries, utilities, and maintenance.
This distinction is important because it
supports proper budgeting, ensures funds are allocated appropriately between
development and operations, and helps in evaluating the sustainability and
effectiveness of government spending.
7.
What is the role of the EPICOR system in government financial management?
Answer:
EPICOR is an Integrated Financial Management Information System used to record,
process, and monitor government financial transactions. It facilitates
budgeting, expenditure control, and financial reporting in a centralized
system.
Its role is critical in enhancing
accuracy, improving efficiency, ensuring real-time monitoring of funds, and
strengthening internal controls, thereby promoting transparency and
accountability in public financial management.
8.
A government entity paid TZS 5,000,000 in salaries, with opening payable of
TZS 600,000 and closing payable of TZS 400,000. What is the actual expense, and
how is it determined?
Answer:
The actual expense is TZS 4,800,000. This is determined by adjusting the cash
paid for the change in salary payables. Since the payable decreased by TZS
200,000, it indicates that more cash was paid than the expense incurred during
the period.
Therefore, the expense is calculated as
cash paid minus the decrease in liability, ensuring that the expense reflects
the actual cost incurred in that period.
9.
How is VAT treated when preparing an invoice, and why is it important in
financial reporting?
Answer:
VAT is added to the selling price as output tax, increasing the total amount
payable by the customer. The business collects this tax on behalf of the
government and is required to remit it to the tax authority.
It is important in financial reporting
because it ensures compliance with tax laws, proper recording of liabilities to
the government, and accurate presentation of revenue and tax obligations.
10.
Which law governs the management of public funds in Tanzania, and what is
its significance?
Answer:
The Public Finance Act, 2001 governs the management and control of public funds
in Tanzania.
Its significance lies in providing a
legal framework for budgeting, expenditure control, financial reporting, and
accountability. It defines the roles and responsibilities of accounting
officers and ensures that public resources are used efficiently, transparently,
and in accordance with the law.
11.
Who is the Accounting Officer in a Ministry, and what are their key
responsibilities?
Answer:
The Permanent Secretary is the Accounting Officer in a Ministry.
Their responsibilities include managing
public funds, ensuring compliance with financial laws and regulations,
maintaining proper accounting records, implementing effective internal
controls, and safeguarding government assets. They are ultimately accountable
for the financial performance and integrity of the ministry.
12.
What does positive working capital indicate in an organization, and why is
it important?
Answer:
Positive working capital indicates that current assets exceed current
liabilities, meaning the organization has sufficient resources to meet its
short-term obligations.
It is important because it reflects
financial stability, supports smooth day-to-day operations, and demonstrates
the entity’s ability to manage its liquidity effectively without financial
distress.
13.
In government accounting, what is meant by “commitment,” and why is it
important to record commitments before actual payment is made?
Answer:
A commitment in government accounting refers to an obligation created when an
entity enters into a contract or issues a Local Purchase Order (LPO) for goods
or services, even before payment is made. It represents future expenditure that
has already been legally initiated. Recording commitments is important because
it helps control spending within approved budgets, prevents over-expenditure,
and ensures that funds are reserved for specific purposes. It also enhances
fiscal discipline and provides a more accurate picture of outstanding
obligations.
14.
Explain the prudence concept in accounting and how it is applied in
preparing financial statements.
Answer:
The prudence concept requires that accountants exercise caution when making
judgments under uncertainty by recognizing anticipated losses immediately while
only recognizing gains when they are realized. This ensures that financial
statements are not overstated. For example, provisions for doubtful debts are
created when there is a risk that some receivables may not be collected. This
approach promotes reliability and protects users of financial statements from
being misled by overly optimistic reporting.
15.
Which financial statement shows the results of operations for a given
period, and what key information does it provide?
Answer:
The Income Statement shows the results of operations over a specific period. It
provides details of revenues earned and expenses incurred, ultimately
determining whether the entity has made a surplus or deficit. In the public
sector, it helps assess how efficiently resources have been utilized in
delivering services and whether expenditures align with planned objectives.
16.
What is an indirect tax, and how does it differ from a direct tax in terms
of burden and collection?
Answer:
An indirect tax is a tax that is collected by an intermediary, such as a
business, and then remitted to the government, with the actual burden falling
on the final consumer. Value Added Tax (VAT) is a common example. Unlike direct
taxes, such as PAYE or corporate tax, which are paid directly by the individual
or entity earning the income, indirect taxes are embedded in the price of goods
and services. This makes them easier to collect but less visible to the
taxpayer.
17.
Explain the matching principle and its importance in determining accurate
financial performance.
Answer:
The matching principle requires that expenses be recognized in the same
accounting period as the revenues they help generate. This ensures that
financial performance is measured accurately by linking costs directly to the
income earned. For instance, if goods are sold in a particular period, the cost
of those goods should be recorded in the same period. This principle prevents
distortion of profits and supports meaningful financial analysis and
decision-making.
18.
Who is responsible for ensuring that internal control systems are effective
within a government institution, and what does this responsibility involve?
Answer:
The Accounting Officer, typically the Permanent Secretary or equivalent, is
responsible for ensuring that internal control systems are effective. This
responsibility involves establishing procedures that safeguard assets, ensure
accurate financial reporting, prevent fraud, and ensure compliance with laws
and regulations. It also includes supervising staff, enforcing segregation of
duties, and regularly reviewing financial operations to maintain
accountability.
19.
When a fixed asset is sold, how is the difference between its selling price
and book value treated in accounting records?
Answer:
The difference between the selling price and the net book value of a fixed
asset is recognized as either a gain or a loss on disposal. If the selling
price exceeds the book value, it results in a gain; if it is lower, it results
in a loss. This treatment ensures that financial statements reflect the true
economic impact of disposing of the asset.
20.
Explain the concept of virement in public financial management and the
conditions under which it is allowed.
Answer:
Virement refers to the reallocation of funds from one expenditure item to
another within the same approved budget vote. It is allowed to provide
flexibility in budget execution when priorities change, but it must be done
within established regulations and usually requires approval from higher
authorities such as the Treasury. It ensures that spending remains controlled
while allowing adjustments without exceeding the total budget.
21.
Identify and explain a transaction that results in a decrease in both assets
and liabilities.
Answer:
A typical example is the payment of a creditor using cash or cheque. In this
case, the asset (cash or bank balance) decreases, and at the same time, the
liability (amount owed to the creditor) is reduced. This transaction maintains
the balance of the accounting equation while reducing the overall financial
position.
22.
How is a trade discount treated in accounting, and why is it not recorded
separately in the books?
Answer:
A trade discount is deducted from the listed price of goods before recording
the transaction, and only the net amount is entered in the accounting records.
It is not recorded separately because it is considered a reduction in the
purchase or selling price rather than an expense or income. This simplifies
accounting records and reflects the actual cost incurred.
23.
Explain the difference
between a trial balance and a bank reconciliation statement, and their roles in
financial control.
Answer:
A trial balance is used to check the arithmetical accuracy of ledger accounts
by ensuring total debits equal total credits, while a bank reconciliation
statement compares the cashbook with the bank statement to identify timing and
recording differences.
Both tools support financial control, but
the trial balance focuses on internal records, whereas bank reconciliation
ensures accuracy of cash balances and detects discrepancies with external
records.
24.
Explain how access control in an IFMIS like EPICOR enhances financial
management in government institutions.
Answer:
Access control in EPICOR ensures that only authorized users can access specific
functions or data within the system. This prevents unauthorized transactions,
reduces the risk of fraud, and ensures accountability by assigning
responsibilities to specific users. It also maintains data integrity and
supports audit trails, making it easier to track and verify transactions.
25.
What is a capital receipt in the context of a Local Government Authority,
and give an example.
Answer:
A capital receipt refers to funds received from non-recurring sources that
affect the asset base of the authority rather than its regular income. An
example is the proceeds from the sale of a fixed asset, such as an old vehicle
or equipment. These receipts are typically used for development purposes rather
than day-to-day operations.
26.
Under what circumstances is a suspense account created, and how is it
eventually cleared?
Answer:
A suspense account is created when there is a difference in the trial balance
or when the correct account for a transaction cannot be immediately identified.
It temporarily holds the discrepancy to allow accounting processes to continue.
Once the error is identified, correcting entries are made, and the suspense
account is cleared.
27.
Which institution regulates the accounting profession in Tanzania, and what
are its key functions?
Answer:
The National Board of Accountants and Auditors (NBAA) regulates the accounting
profession in Tanzania. Its key functions include setting accounting and
auditing standards, licensing professionals, ensuring compliance with
international practices, and maintaining professional ethics and discipline.
28.
Explain the concept of unretired imprest and its implications in public
financial management.
Answer:
Unretired imprest refers to funds advanced to an officer for official use that
have not yet been accounted for through submission of receipts or expenditure
reports. It indicates incomplete accountability and may raise audit concerns if
not cleared on time, as it suggests weak financial control or possible misuse
of funds.
29.
State and explain the accounting equation and its significance in financial
reporting.
Answer:
The accounting equation states that Assets = Liabilities + Equity. It forms the
foundation of double-entry bookkeeping by ensuring that all financial
transactions maintain balance in the accounts. It also helps in understanding
how resources are financed, whether through borrowing or owner’s interest.
30.
When revenue is collected in a government office, what is the correct
initial recording procedure, and why is it important?
Answer:
The first record must be made in an official receipt book immediately upon
collection. This is important to ensure accountability, prevent
misappropriation of funds, and provide evidence of collection before the
transaction is entered into the cashbook.
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