Free Practice Questions for ETiCPA ATQE Exam

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Key Facts: ETiCPA ATQE Exam Exam

Proclamation 1372/2025

Enabling National Statute

Federal Negarit Gazette

9 Modules

Curriculum Across 2 Levels

ETiCPA Qualification Framework

50%

Module Pass Mark

ETiCPA Examination Policies

July 2026

Inaugural Examination Sitting

ETiCPA Examination Schedule

Free 100-question English-language MCQ practice test for the ETiCPA Accounting Technician Qualifying Examination (ATQE), covering all 9 modules across Level 1 Foundation and Level 2 Advanced including financial accounting, Ethiopian Commercial Code 2021, tax proclamation rules, cost accounting, and public sector finance.

Sample ETiCPA ATQE Exam Practice Questions

Try these sample questions to review concepts for the ETiCPA ATQE Exam exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1An enterprise in Addis Ababa purchases office computers costing ETB 85,000 on credit from a local supplier. Which of the following entries correctly records this transaction in the general ledger under double-entry bookkeeping?

A.Debit Office Equipment ETB 85,000; Credit Accounts Payable ETB 85,000

B.Debit Accounts Payable ETB 85,000; Credit Office Equipment ETB 85,000

C.Debit Office Equipment ETB 85,000; Credit Cash at Bank ETB 85,000

D.Debit Purchases ETB 85,000; Credit Accounts Payable ETB 85,000

Explanation: Under the double-entry accounting framework, purchasing non-current assets on credit increases an asset account (Office Equipment) via a debit and increases a liability account (Accounts Payable / Trade Creditors) via a credit. Purchases account is reserved exclusively for goods acquired for resale.

2At the start of the financial year, a sole proprietorship had total assets of ETB 650,000 and total liabilities of ETB 210,000. During the year, the owner introduced additional capital of ETB 50,000, withdrew ETB 30,000 for personal use, and the business earned a net profit of ETB 95,000. If liabilities decreased by ETB 40,000, what is the total value of assets at the end of the year?

A.ETB 725,000

B.ETB 755,000

C.ETB 685,000

D.ETB 795,000

Explanation: Opening equity = Assets - Liabilities = ETB 650,000 - ETB 210,000 = ETB 440,000. Closing equity = Opening equity + Capital introduced - Drawings + Net profit = ETB 440,000 + ETB 50,000 - ETB 30,000 + ETB 95,000 = ETB 555,000. Closing liabilities = ETB 210,000 - ETB 40,000 = ETB 170,000. Total closing assets = Closing equity + Closing liabilities = ETB 555,000 + ETB 170,000 = ETB 725,000.

3Which of the following errors would cause the total debits and total credits of a trial balance to disagree, thereby revealing the presence of an error?

A.A credit sale of ETB 14,000 was posted to the sales account as ETB 1,400 while correctly recorded in the customer account as ETB 14,000

B.A cash purchase of stationery for ETB 2,500 was completely omitted from the books of original entry

C.An invoice of ETB 6,000 for motor vehicle repairs was mistakenly debited to the Motor Vehicles asset account

D.A payment of ETB 8,000 received from customer Abebe was credited to the account of customer Almaz

Explanation: A single-sided transposition or unequal monetary posting (ETB 14,000 debit vs ETB 1,400 credit) creates an imbalance between total debits and credits, which directly prevents the trial balance from balancing. Omission, errors of principle, and errors of commission affect both sides equally and do not disrupt trial balance equality.

4On 1 October 2025, an enterprise pays an annual property insurance premium of ETB 48,000 covering the period from 1 October 2025 to 30 September 2026. The enterprise's accounting year ends on 31 December 2025. Under accrual accounting principles, what amounts should be recognized as insurance expense in the profit or loss and prepaid insurance in the statement of financial position as of 31 December 2025?

A.Insurance expense: ETB 12,000; Prepaid insurance: ETB 36,000

B.Insurance expense: ETB 48,000; Prepaid insurance: ETB 0

C.Insurance expense: ETB 36,000; Prepaid insurance: ETB 12,000

D.Insurance expense: ETB 16,000; Prepaid insurance: ETB 32,000

Explanation: The annual premium covers 12 months (ETB 4,000 per month). Between 1 October 2025 and 31 December 2025, 3 months have expired: 3 × ETB 4,000 = ETB 12,000 recognized as insurance expense. The unexpired 9 months (1 January 2026 to 30 September 2026): 9 × ETB 4,000 = ETB 36,000 must be carried forward as a current asset (Prepaid Insurance).

5A trading firm in Hawassa purchased packaging equipment on 1 Hamle 2017 E.C. (8 July 2025 G.C.) for ETB 260,000. The firm paid ETB 15,000 for freight and ETB 25,000 for site preparation and installation. The equipment has an estimated useful life of 5 years and an estimated residual value of ETB 20,000. Using the straight-line depreciation method, what is the annual depreciation expense?

A.ETB 56,000

B.ETB 60,000

C.ETB 48,000

D.ETB 52,000

Explanation: Under IAS 16 and IFRS for SMEs Section 17, the initial cost of property, plant, and equipment includes purchase price plus all directly attributable costs to bring the asset to its working condition: Cost = ETB 260,000 + ETB 15,000 + ETB 25,000 = ETB 300,000. Depreciable amount = Cost - Residual Value = ETB 300,000 - ETB 20,000 = ETB 280,000. Annual straight-line depreciation = ETB 280,000 / 5 = ETB 56,000.

6On 1 January 2024, a manufacturing company acquired a delivery van for ETB 400,000. The company applies the reducing (diminishing) balance method of depreciation at an annual rate of 25%. What is the depreciation charge for the second year ended 31 December 2025, and what is the van's carrying amount at that date?

A.Year 2 depreciation: ETB 75,000; Carrying amount: ETB 225,000

B.Year 2 depreciation: ETB 100,000; Carrying amount: ETB 200,000

C.Year 2 depreciation: ETB 75,000; Carrying amount: ETB 300,000

D.Year 2 depreciation: ETB 56,250; Carrying amount: ETB 168,750

Explanation: Year 1 depreciation (2024) = 25% of ETB 400,000 = ETB 100,000. Carrying amount at 31 December 2024 = ETB 400,000 - ETB 100,000 = ETB 300,000. Year 2 depreciation (2025) = 25% of ETB 300,000 = ETB 75,000. Carrying amount at 31 December 2025 = ETB 300,000 - ETB 75,000 = ETB 225,000.

7At the reporting date, an Ethiopian wholesale company holds 500 units of specialized machinery spare parts. The original cost per unit is ETB 1,200. Due to new market alternatives, the expected selling price per unit has dropped to ETB 1,300, and the company must incur estimated selling and delivery costs of ETB 250 per unit to complete the sales. Under IAS 2 / IFRS for SMEs Section 13, at what total value should this inventory be stated on the balance sheet?

A.ETB 525,000

B.ETB 600,000

C.ETB 650,000

D.ETB 475,000

Explanation: IAS 2 and IFRS for SMEs Section 13 mandate that inventories be measured at the lower of cost and net realizable value (NRV). Cost = 500 × ETB 1,200 = ETB 600,000. NRV = Estimated selling price - Estimated costs to sell = ETB 1,300 - ETB 250 = ETB 1,050 per unit. Total NRV = 500 × ETB 1,050 = ETB 525,000. Because NRV (ETB 525,000) is lower than cost (ETB 600,000), inventory must be written down to ETB 525,000, recognizing an inventory write-down loss of ETB 75,000.

8A business in Dire Dawa uses the First-In, First-Out (FIFO) method for inventory valuation. During Meskerem, inventory records showed: Opening inventory: 100 units @ ETB 40; 10 Meskerem purchase: 200 units @ ETB 45; 18 Meskerem sale: 220 units; 24 Meskerem purchase: 150 units @ ETB 50. What is the value of the closing inventory at the end of Meskerem?

A.ETB 11,100

B.ETB 11,500

C.ETB 10,350

D.ETB 9,200

Explanation: Total units available = 100 + 200 + 150 = 450 units. Units sold = 220 units, so closing inventory = 450 - 220 = 230 units. Under FIFO the units sold are taken from the earliest stock: 100 units @ ETB 40 then 120 units @ ETB 45. The 230 units remaining are therefore the 80 unsold units from the 10 Meskerem purchase (80 x ETB 45 = ETB 3,600) plus all 150 units from the 24 Meskerem purchase (150 x ETB 50 = ETB 7,500). Closing inventory = ETB 3,600 + ETB 7,500 = ETB 11,100.

9While preparing a bank reconciliation statement on 30 June 2026, an accountant finds that the Commercial Bank of Ethiopia (CBE) bank statement shows an overdraft of ETB 28,400. Cheques drawn by the firm totaling ETB 9,600 have not yet been presented for payment. Deposits of ETB 14,200 made on 29 June have not yet cleared on the bank statement. What is the correct adjusted balance that should appear in the firm's cash book?

A.Overdraft of ETB 23,800

B.Overdraft of ETB 33,000

C.Positive balance of ETB 4,600

D.Overdraft of ETB 52,200

Explanation: Starting from Bank Statement balance: -ETB 28,400 (overdraft). Add uncredited deposits / outstanding lodgements: +ETB 14,200. Deduct unpresented cheques: -ETB 9,600. Cash book balance = -ETB 28,400 + ETB 14,200 - ETB 9,600 = -ETB 23,800 (overdraft).

10Which of the following items requires an adjustment to the enterprise's cash book before preparing the bank reconciliation statement?

A.Bank service charges and direct debit utility payments listed on the bank statement but not yet recorded by the enterprise

B.Cheques issued to suppliers that have not yet been presented to the bank for payment

C.Customer cheques deposited on the last day of the month that appear as uncredited lodgements on the bank statement

D.A banking error where the bank mistakenly credited another firm's deposit to the enterprise's account

Explanation: Bank charges, standing orders, direct debits, and direct customer transfers that appear on the bank statement represent transactions of which the enterprise was unaware until receiving the statement. They must be entered into the cash book to bring its balance up to date. Unpresented cheques and uncredited lodgements are timing differences that go directly on the reconciliation statement.

About the ETiCPA ATQE Exam Exam

Prepare for the Ethiopian Institute of Certified Public Accountants (ETiCPA) Accounting Technician Qualifying Examination (ATQE / ATQ) with our free 100-question practice test. Established under Proclamation No. 1372/2025, ETiCPA is Ethiopia's statutory national professional accountancy body. The ATQE is Ethiopia's intermediate accounting credential, designed to build an ethical, practice-ready accounting cadre aligned with IFAC International Education Standards. This bank is an English-language multiple-choice study adaptation: the real ATQE paper is examined in English but mixes 20 multiple-choice questions with compulsory written-response questions, so these MCQs drill the same syllabus knowledge rather than simulating the official paper format. It covers all nine modules across Level 1 (Foundation) and Level 2 (Advanced): double-entry bookkeeping and IFRS for SMEs financial reporting, cost and management accounting (including CVP and variance analysis), Ethiopian Commercial Code 2021 (Proclamation No. 1243/2021), Federal Income Tax (Proclamation No. 979/2016 as amended by Proclamation No. 1395/2025), VAT (Proclamation No. 1341/2024), internal controls and IESBA professional ethics, and public sector financial administration under Proclamation No. 648/2009. Note: This is an independent study tool and not an official ETiCPA examination paper.

Exam sponsor: Ethiopian Institute of Certified Public Accountants (ETiCPA). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

The qualification comprises two levels: Level 1 (Foundation Technician) covering Introduction to Accounting (M1), Cost Accounting (M2), Business Skills (M3), and Ethiopian Business Law (M4); and Level 2 (Advanced Technician) covering Financial Accounting (M5), Management Accounting (M6), Assurance, Controls, and Ethics (M7), Ethiopian Taxation (M8), and Ethiopian Public Sector Accounting (M9). Level 1 must be completed before Level 2. ETiCPA runs two examination sessions a year — the last week of January and the last week of July — at accredited university and college examination centres across Ethiopia, with passed papers credited indefinitely while the candidate remains registered.

Time Limit

2 hours per Level 1 paper; 2.5 hours per Level 2 paper

Passing Score

50% per module paper

Exam / Certification Fees

ETB 4,000 per Level 1 paper and ETB 5,000 per Level 2 paper, plus ETB 2,000 student registration and ETB 2,000 annual student subscription and an ETB 1,500 certificate fee (ETiCPA Fee Directive No. 02/2026, Schedule I)

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Ethiopian Institute of Certified Public Accountants (ETiCPA): official exam information

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

25%

Financial Accounting & Bookkeeping (M1 & M5)

Double-entry accounting cycle, adjustments, trial balance, bank reconciliations, inventory valuation under IAS 2, depreciation, IFRS for SMEs, and preparation of financial statements for sole traders, partnerships, and limited companies.

20%

Cost & Management Accounting (M2 & M6)

Classification of costs, material and labor accounting, overhead allocation and absorption, job and batch costing, cost-volume-profit (CVP) and break-even analysis, budgeting, and standard costing variance analysis.

25%

Ethiopian Business Law & Taxation (M4 & M8)

Commercial Code of Ethiopia 2021 (Proclamation No. 1243/2021), business organizations, contracts, Federal Income Tax Proclamation No. 979/2016 as amended by Proclamation No. 1395/2025 (Schedules A, B, C), Value Added Tax Proclamation No. 1341/2024 (15% rate, ETB 2M threshold), and Tax Administration Proclamation No. 983/2016.

15%

Business Skills, Assurance, Controls & Ethics (M3 & M7)

Organisation types and structures, stakeholders and agency theory, information management and data security, internal control systems, substantive audit testing, audit documentation, vouching and verification, and the IESBA Code of Ethics for Professional Accountants.

15%

Ethiopian Public Sector Financial Management (M9)

Federal Government Financial Administration Proclamation No. 648/2009 (as amended by Proclamation No. 970/2016), public budget formulation and execution, commitment control, public procurement under Proclamation No. 1333/2024, chart of accounts, and IPSAS adoption in Ethiopia.

Preparing for the ETiCPA ATQE Exam Exam

What You Need to Know

Passing score: 50% per module paper
Assessment: The qualification comprises two levels: Level 1 (Foundation Technician) covering Introduction to Accounting (M1), Cost Accounting (M2), Business Skills (M3), and Ethiopian Business Law (M4); and Level 2 (Advanced Technician) covering Financial Accounting (M5), Management Accounting (M6), Assurance, Controls, and Ethics (M7), Ethiopian Taxation (M8), and Ethiopian Public Sector Accounting (M9). Level 1 must be completed before Level 2. ETiCPA runs two examination sessions a year — the last week of January and the last week of July — at accredited university and college examination centres across Ethiopia, with passed papers credited indefinitely while the candidate remains registered.
Time limit: 2 hours per Level 1 paper; 2.5 hours per Level 2 paper
Exam / certification fees: ETB 4,000 per Level 1 paper and ETB 5,000 per Level 2 paper, plus ETB 2,000 student registration and ETB 2,000 annual student subscription and an ETB 1,500 certificate fee (ETiCPA Fee Directive No. 02/2026, Schedule I) Official sources

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ETiCPA ATQE Exam: Suggested Study Strategy

1Master the fundamental double-entry mechanics for adjustments, accruals, prepayments, depreciation methods, and bank reconciliation statements.

2Review the Commercial Code of Ethiopia 2021 (Proclamation No. 1243/2021), especially rules governing Share Companies (minimum 5 shareholders, ETB 50,000 capital, ETB 100 minimum par value) and Private Limited Companies (2 to 50 members, ETB 15,000 capital).

3Practice Ethiopian employment income tax computations using the revised Schedule A brackets under Income Tax Amendment Proclamation No. 1395/2025 (ETB 2,000 threshold and 15%–35% graduated rates).

4Understand standard costing variance calculations (material price and usage, labor rate and efficiency) and cost-volume-profit (break-even and margin of safety) formulas.

5Familiarize yourself with Ethiopian public sector financial administration under Proclamation No. 648/2009, including commitment accounting, budget transfer rules, and the transition to IPSAS.

Frequently Asked Questions

What is the Ethiopian Institute of Certified Public Accountants (ETiCPA) ATQE?

The Accounting Technician Qualification Ethiopia (ATQE) is the national professional credential established by ETiCPA under Proclamation No. 1372/2025. Aligned with IFAC International Education Standards, it certifies accounting support staff and finance technicians in Ethiopia.

What modules are included in the ETiCPA ATQE curriculum?

The syllabus comprises nine modules across two tiers: Level 1 (Foundation Technician) includes Introduction to Accounting (M1), Cost Accounting (M2), Business Skills (M3), and Ethiopian Business Law (M4); Level 2 (Advanced Technician) includes Financial Accounting (M5), Management Accounting (M6), Assurance, Controls, and Ethics (M7), Ethiopian Taxation (M8), and Ethiopian Public Sector Accounting (M9).

When and where are ETiCPA ATQE examinations administered?

ETiCPA holds two examination sessions per calendar year, in the last week of January and the last week of July. The inaugural national sitting ran from 27 to 31 July 2026 at Addis Ababa, Hawassa, Jimma and Haramaya Universities and Blue Mark College in Bahir Dar, with nearly 540 candidates and an overall pass rate of 62% across the nine papers.

Which Ethiopian laws and accounting standards are examined on the ATQE?

Candidates are examined on the Commercial Code of Ethiopia 2021 (Proclamation No. 1243/2021), Federal Income Tax Proclamation No. 979/2016 (as amended by Proclamation No. 1395/2025), Value Added Tax Proclamation No. 1341/2024, Tax Administration Proclamation No. 983/2016, Federal Financial Administration Proclamation No. 648/2009, IFRS for SMEs, and the IESBA Code of Ethics.

Is this practice question bank an official ETiCPA examination paper?

No. This is an independent English-language multiple-choice study adaptation covering the technical principles, statutory rules and computations in the ATQ syllabus. The official ATQE paper is sat in English but combines 20 multiple-choice questions with compulsory written-response questions, so this bank is a study aid and not a simulation of the official paper format. It is not published by ETiCPA.