130+ Free KASNEB ATD Practice Questions

Pass your KASNEB Accounting Technicians Diploma (ATD) exam on the first try — instant access, no signup required.

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2026 Statistics

Key Facts: KASNEB ATD Exam

12 papers

Papers Across Three Levels (AD11–AD34)

KASNEB ATD Programme

50%

Minimum Pass Mark Per Paper

KASNEB Examination Regulations

Kshs 6,000

ATD Registration Fee

KASNEB Fee Structures / Brochure

2 hours

Official Duration Per Paper

KASNEB Examination Timetables

C-

Minimum KCSE Mean Grade

KASNEB ATD Entry Requirements

Kshs 14,000

Approximate Total Examination Fees (12 Papers)

KASNEB Fee Structures / Brochure

KASNEB ATD is a three-level accounting diploma with 12 papers (AD11–AD34). Register for Kshs 6,000 with KCSE grade C-, pay Kshs 1,000–1,300 per paper, and pass each two-hour exam with at least 50% at April, August, or December sittings.

Sample KASNEB ATD Practice Questions

Try these sample questions to test your KASNEB ATD exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 130+ question experience with AI tutoring.

1Under the double-entry system, when a business purchases inventory on credit for Kshs 50,000, which journal entry is CORRECT?

A.Debit Purchases Kshs 50,000; Credit Accounts Payable Kshs 50,000

B.Debit Accounts Payable Kshs 50,000; Credit Purchases Kshs 50,000

C.Debit Cash Kshs 50,000; Credit Purchases Kshs 50,000

D.Debit Purchases Kshs 50,000; Credit Cash Kshs 50,000

Explanation: Credit purchases increase an expense (or inventory asset) and create a liability to the supplier. Purchases are debited and Accounts Payable is credited because payment is not yet made.

2Which accounting element is increased by a credit entry in the ledger?

A.Liabilities

B.Assets

C.Expenses

D.Drawings

Explanation: In standard double-entry rules, liabilities, capital, and income increase with credit entries. Assets and expenses increase with debit entries.

3The accounting equation Assets = Liabilities + Capital remains in balance because every transaction:

A.Affects at least two accounts with equal debit and credit totals

B.Changes only one account at a time

C.Always increases both assets and liabilities

D.Must be recorded in the cash book only

Explanation: Double-entry bookkeeping requires that every transaction is recorded with equal debits and credits, keeping the accounting equation balanced.

4A trial balance that agrees in total debits and credits proves that:

A.Debits and credits are equal in the ledger but errors may still exist

B.Every account balance is correct

C.No transaction was omitted from the books

D.The financial statements are free from material misstatement

Explanation: A balanced trial balance confirms arithmetic equality of debits and credits but does not detect errors such as complete omission, compensating errors, or misclassification.

5Which book of original entry is used to record all cash and bank receipts and payments?

A.Cash book

B.Sales day book

C.Purchases day book

D.General journal

Explanation: The cash book is a ledger account and book of original entry that records all cash and bank transactions, often with separate columns for cash and bank.

6A debit balance in the rent account at year-end normally represents:

A.Rent expense incurred during the period

B.Rent income received in advance

C.A liability for unpaid rent to the landlord

D.Capital introduced by the owner

Explanation: Expense accounts normally carry debit balances representing costs consumed in the period. Rent is an operating expense debited as incurred.

7When goods costing Kshs 12,000 are sold for Kshs 18,000 cash, the immediate effect on total assets is:

A.An increase of Kshs 6,000 after replacing inventory with cash at selling price

B.An increase of Kshs 18,000 with no reduction elsewhere

C.A decrease of Kshs 12,000 because inventory is consumed

D.No change because sales and purchases offset

Explanation: Inventory of Kshs 12,000 is replaced by cash of Kshs 18,000, increasing total assets by the gross profit of Kshs 6,000. The sale also affects income and capital through the profit element.

8Which document is issued by a supplier to request payment for goods delivered on credit?

A.Sales invoice

B.Debit note

C.Credit note

D.Goods received note

Explanation: A sales invoice (from the supplier's perspective) states the amount due for goods or services supplied on credit and supports the entry in purchases and payables.

9Under the Constitution of Kenya 2010, the supreme law of the Republic is:

A.The Constitution itself

B.Any Act of Parliament passed by majority vote

C.Customary law as practised in each community

D.Regulations made by county governments alone

Explanation: Article 2 of the Constitution declares it the supreme law; any law inconsistent with it is void to the extent of the inconsistency.

10A valid contract under Kenyan law generally requires offer, acceptance, intention to create legal relations, capacity, and:

A.Consideration (unless an exception applies)

B.Registration with the Registrar of Companies

C.A written witness for every agreement

D.Approval by a magistrate

Explanation: Common law contract formation requires consideration unless the contract is under seal or falls within recognised exceptions. The other elements listed are not universal requirements for every contract.

About the KASNEB ATD Exam

The Accounting Technicians Diploma (ATD) is KASNEB's three-level diploma qualification building practical skills in financial and management accounting, taxation, auditing, economics, law, entrepreneurship, ICT, and management. Level I covers AD11 Introduction to Financial Accounting, AD12 Introduction to Law and Ethics, AD13 Entrepreneurship and Communication, and AD14 Information Communication Technology. Level II covers AD21 Financial Accounting, AD22 Principles of Management, AD23 Business Mathematics and Statistics, and AD24 Principles of Taxation. Level III covers AD31 Principles of Economics, AD32 Fundamentals of Management Accounting, AD33 Fundamentals of Finance, and AD34 Principles of Auditing. Each official paper is a two-hour written examination. This free practice bank reformats the syllabus into 100 multiple-choice items for revision.

Questions

100 scored questions

Time Limit

2 hours per paper across 12 papers in three levels

Passing Score

50% per paper

Exam Fee

Registration Kshs 6,000; Kshs 1,000 per Level I paper, Kshs 1,200 per Level II paper, Kshs 1,300 per Level III paper; annual renewal Kshs 1,600 (Kenya Accountants and Secretaries National Examinations Board (KASNEB))

KASNEB ATD Exam Content Outline

~8%

AD11 Introduction to Financial Accounting

Double-entry, books of original entry, trial balance, accounting equation, and source documents

~8%

AD12 Introduction to Law and Ethics

Constitution, contract and tort, corporate personality, negotiable instruments, and professional ethics

~8%

AD13 Entrepreneurship and Communication

Business planning, business forms, SWOT, communication skills, and business correspondence

~8%

AD14 Information Communication Technology

Spreadsheets, databases, hardware, cybersecurity, cloud computing, and accounting information systems

~10%

AD21 Financial Accounting

Financial statements, depreciation, inventory, accruals, bank reconciliation, and IFRS 15 revenue

~8%

AD22 Principles of Management

Management functions, motivation theories, span of control, centralisation, and organisational structures

~8%

AD23 Business Mathematics and Statistics

Percentages, simple and compound interest, mean, median, probability, and standard deviation

~9%

AD24 Principles of Taxation

Kenya VAT at 16%, corporation tax at 30%, PAYE, withholding tax, KRA role, and installment tax

~8%

AD31 Principles of Economics

Demand and supply, GDP, inflation, market structures, opportunity cost, and CBK monetary policy

~8%

AD32 Fundamentals of Management Accounting

Cost classification, break-even, variances, budgeting, absorption costing, and activity-based costing

~8%

AD33 Fundamentals of Finance

Working capital, time value of money, WACC, NPV, trade credit, and financial leverage

~9%

AD34 Principles of Auditing

Audit objectives, evidence, segregation of duties, materiality, opinions, planning, and scepticism

How to Pass the KASNEB ATD Exam

What You Need to Know

Passing score: 50% per paper
Exam length: 100 questions
Time limit: 2 hours per paper across 12 papers in three levels
Exam fee: Registration Kshs 6,000; Kshs 1,000 per Level I paper, Kshs 1,200 per Level II paper, Kshs 1,300 per Level III paper; annual renewal Kshs 1,600

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

KASNEB ATD Study Tips from Top Performers

1Complete Level I before attempting Level II — financial accounting and law foundations underpin later papers.

2Drill Kenyan tax facts for AD24: 16% VAT, 30% corporation tax for residents, PAYE, and common withholding rates.

3Practise quantitative techniques daily for AD23 and management accounting calculations in AD32.

4Link AD21 and AD34 — financial statement preparation and audit evidence testing appear across both papers.

5Use spreadsheets actively for AD14 ICT; functions like SUM and pivot tables are core skills.

6Book papers level by level through the KASNEB portal and keep annual registration current.

7Allow at least six months of continuous study before sitting each level, as KASNEB advises.

Frequently Asked Questions

What is the KASNEB Accounting Technicians Diploma (ATD)?

ATD is a three-level diploma qualification administered by KASNEB that develops practical accounting, taxation, auditing, finance, and management skills. It comprises 12 papers from AD11 to AD34 and serves as a foundation for higher qualifications such as CPA.

What are the entry requirements for ATD?

Candidates need a KCSE mean grade of C- (Minus) or higher, a KASNEB CAMS qualification, or another certificate approved by KASNEB.

How much does ATD cost?

Registration is Kshs 6,000 with annual renewal of Kshs 1,600. Examination fees are Kshs 1,000 per Level I paper, Kshs 1,200 per Level II paper, and Kshs 1,300 per Level III paper, totalling approximately Kshs 14,000 for all 12 papers.

What is the pass mark for ATD papers?

Candidates must score at least 50% to pass each paper. Failed papers are re-sat at a later examination sitting.

How long is each ATD examination?

Each official ATD paper is a two-hour written examination, as shown on KASNEB examination timetables.

When are KASNEB ATD examinations held?

KASNEB examinations are typically held in April, August, and December each year. Candidates book papers through the KASNEB student portal.

What papers make up the ATD programme?

Level I: AD11, AD12, AD13, AD14. Level II: AD21, AD22, AD23, AD24. Level III: AD31, AD32, AD33, AD34.

Are these practice questions multiple-choice?

Yes. The official ATD papers use written responses, but this free practice bank provides 100 multiple-choice items with explanations so you can revise and self-test efficiently.