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Free Practice Questions for Sri Lanka Accountants' Service Exam

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Key Facts: Sri Lanka Accountants' Service Exam Exam

4 Papers

Two Common Part papers plus two Accountants' Service Second Part papers, each of 100 marks

Common Competitive Examination for All-Island Services Gazette notification

40%

Minimum qualifying mark in every written paper

Common Competitive Examination for All-Island Services Gazette notification

100 Marks

Minimum aggregate across the two Common Part papers needed to sit the accountancy papers

Common Competitive Examination for All-Island Services Gazette notification

Rs. 1,600

Total fee: Rs. 1,000 Common Part plus Rs. 300 for each of the two Second Part papers

Common Competitive Examination for All-Island Services Gazette notification

0 Marks

Marks awarded at interview — the Accountants' Service holds a general interview only, to verify qualifications

Common Competitive Examination for All-Island Services Gazette notification

Grade III

Entry grade for direct recruitment into the Sri Lanka Accountants' Service

SLAcS Service Minute, Gazette Extraordinary No. 1670/33 of 10.09.2010

The Sri Lanka Accountants' Service Grade III open competitive examination is sat as part of the Common Competitive Examination for All-Island Services and the Executive Service Category: a common Intelligence Test and Comprehension paper, then two accountancy papers — Financial and Managerial Accounting, and Advanced Auditing and Economic Analysis — each of 100 marks over three hours. A 40% minimum applies to every paper and only a general interview follows, so selection is decided on written marks. This independent 100-question bank covers LKAS and SLFRS reporting, costing and budgeting, investment appraisal, audit risk and opinions, and Sri Lankan public financial management.

Sample Sri Lanka Accountants' Service Exam Practice Questions

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

1An entity purchased an item of heavy machinery on 1 January 2025 for Rs. 1,200,000. It incurred Rs. 80,000 on site preparation and Rs. 120,000 on installation and testing. The machinery has an estimated useful life of 5 years and an estimated residual value of Rs. 200,000. Under LKAS 16 (Property, Plant and Equipment), what is the annual straight-line depreciation charge for the year ended 31 December 2025?
A.Rs. 240,000
B.Rs. 280,000
C.Rs. 200,000
D.Rs. 260,000
Explanation: Under LKAS 16, the initial cost of an asset includes its purchase price plus directly attributable costs required to bring it to working condition for its intended use. Here, total initial cost = Rs. 1,200,000 + Rs. 80,000 + Rs. 120,000 = Rs. 1,400,000. The depreciable amount is Cost minus Residual value (Rs. 1,400,000 - Rs. 200,000 = Rs. 1,200,000), which yields an annual straight-line depreciation charge of Rs. 1,200,000 / 5 = Rs. 240,000.
2When preparing a bank reconciliation statement starting from the adjusted cash book balance to arrive at the balance shown on the bank statement, how should unpresented cheques be treated?
A.Deducted from the cash book balance
B.Added to the cash book balance
C.Omitted because they represent permanent timing differences
D.Debited directly to the bank charges account in the general ledger
Explanation: Unpresented cheques have already been credited (deducted) in the entity's cash book when issued to payees, but have not yet cleared through the banking system. Therefore, when reconciling from the adjusted cash book balance to the bank statement balance, unpresented cheques must be added back because the bank's ledger balance remains higher until payment is presented.
3According to LKAS 2 (Inventories), at what value should inventories be measured in the statement of financial position?
A.At historical cost or replacement cost, whichever is higher
B.At lower of cost and net realizable value
C.At fair value less costs to sell in all circumstances
D.At standard cost adjusted for variance allocations only
Explanation: LKAS 2 paragraph 9 mandates that inventories must be measured at the lower of cost and net realizable value (NRV). Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and estimated costs necessary to make the sale.
4Under LKAS 37 (Provisions, Contingent Liabilities and Contingent Assets), which condition is required for recognizing a provision?
A.The obligation is possible but an outflow of resources is not probable
B.An entity has a present legal or constructive obligation arising from a past event, an outflow of resources embodying economic benefits is probable, and a reliable estimate can be made
C.The commitment has been approved by the board of directors even if no obligating past event has occurred
D.A potential future loss has been identified through sensitivity analysis of economic conditions
Explanation: Under LKAS 37 paragraph 14, a provision is recognized only when three cumulative criteria are met: (1) an entity has a present obligation (legal or constructive) as a result of a past event; (2) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and (3) a reliable estimate can be made of the amount of the obligation.
5A trading firm paid an annual property insurance premium of Rs. 180,000 on 1 October 2025, covering the twelve-month period up to 30 September 2026. The firm closes its accounts annually on 31 December 2025. What is the insurance expense recognized in profit or loss for 2025 and the prepayment asset in the statement of financial position as of 31 December 2025?
A.Expense: Rs. 45,000; Prepayment asset: Rs. 135,000
B.Expense: Rs. 135,000; Prepayment asset: Rs. 45,000
C.Expense: Rs. 90,000; Prepayment asset: Rs. 90,000
D.Expense: Rs. 180,000; Prepayment asset: Rs. 0
Explanation: The premium of Rs. 180,000 covers 12 months (Rs. 15,000 per month). In 2025, exactly 3 months (October, November, December) have elapsed, giving an expense of 3 * Rs. 15,000 = Rs. 45,000. The remaining 9 months (January to September 2026) represent an unexpired prepayment of 9 * Rs. 15,000 = Rs. 135,000 recognized as a current asset.
6Under LKAS 1 (Presentation of Financial Statements), which of the following is NOT part of a complete set of financial statements?
A.A statement of financial position as at the end of the period
B.A statement of profit or loss and other comprehensive income for the period
C.A chairman's narrative operational review and press release
D.A statement of cash flows for the period
Explanation: Under LKAS 1 paragraph 10, a complete set of financial statements comprises a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity, a statement of cash flows, and notes comprising material accounting policy information and explanatory notes. Narrative reviews such as the chairman's statement or board report are outside the statutory financial statements defined by LKAS 1.
7Before adjustment, an entity's cash book shows a debit balance of Rs. 250,000 at 31 December 2025. An audit reveals the following unrecorded items: bank charges of Rs. 5,000; a standing order payment for office rent of Rs. 15,000; and a direct deposit by a customer of Rs. 40,000. What is the adjusted cash book balance to be reported in the statement of financial position?
A.Rs. 230,000
B.Rs. 270,000
C.Rs. 310,000
D.Rs. 200,000
Explanation: Starting with the debit balance in the cash book of Rs. 250,000, we add direct customer collections of Rs. 40,000 and deduct bank charges of Rs. 5,000 and the standing order payment of Rs. 15,000. Adjusted cash book balance = Rs. 250,000 + Rs. 40,000 - Rs. 5,000 - Rs. 15,000 = Rs. 270,000.
8Under LKAS 16, which of the following costs incurred in acquiring a new computerized printing press must be EXPENSED in profit or loss rather than capitalized?
A.Import duties and non-refundable purchase taxes
B.Site preparation and reinforced concrete foundation costs
C.Staff training costs for operating the new machine
D.Professional fees paid to consulting engineers for overseeing installation
Explanation: Under LKAS 16 paragraph 19, staff training costs cannot be capitalized as part of an item of property, plant and equipment because the entity does not have sufficient control over future economic benefits embodied in staff skills. Training costs must be recognized as an expense in profit or loss as incurred.
9A business began operations in January 2025. Inventory movements for its main product during the first quarter were as follows: - 10 Jan: Purchased 100 units @ Rs. 50 - 15 Feb: Purchased 200 units @ Rs. 60 - 20 Mar: Sold 180 units Under the First-In, First-Out (FIFO) method, what are the Cost of Goods Sold (COGS) and the value of ending inventory on 31 March 2025?
A.COGS: Rs. 9,800; Ending inventory: Rs. 7,200
B.COGS: Rs. 10,800; Ending inventory: Rs. 6,200
C.COGS: Rs. 9,000; Ending inventory: Rs. 8,000
D.COGS: Rs. 10,200; Ending inventory: Rs. 6,800
Explanation: Total units available = 100 + 200 = 300 units. Units sold = 180 units, leaving ending inventory of 120 units. Under FIFO, the 180 units sold are assumed to come from the earliest purchases: 100 units @ Rs. 50 (Rs. 5,000) + 80 units @ Rs. 60 (Rs. 4,800) = Rs. 9,800 COGS. The ending 120 units are valued from the latest batch: 120 units @ Rs. 60 = Rs. 7,200. Total cost = Rs. 9,800 + Rs. 7,200 = Rs. 17,000.
10A manufacturing entity acquired factory equipment on 1 January 2024 for Rs. 800,000. It adopts the diminishing balance (reducing balance) method at a rate of 20% per annum. What is the carrying amount of the equipment as of 31 December 2025?
A.Rs. 480,000
B.Rs. 512,000
C.Rs. 640,000
D.Rs. 560,000
Explanation: In Year 1 (2024), depreciation is 20% of Rs. 800,000 = Rs. 160,000, leaving a carrying amount of Rs. 800,000 - Rs. 160,000 = Rs. 640,000. In Year 2 (2025), depreciation is 20% of Rs. 640,000 = Rs. 128,000. Therefore, the carrying amount at 31 December 2025 is Rs. 640,000 - Rs. 128,000 = Rs. 512,000.

About the Sri Lanka Accountants' Service Exam Exam

The Open Competitive Examination for Recruitment to Grade III of the Sri Lanka Accountants' Service (SLAcS) is the premier gateway for qualified accounting graduates and professional accountants seeking leadership positions in public financial management across Sri Lanka's ministries, departments, and provincial administrations. Governed by the Sri Lanka Accountants' Service Minute (Gazette Extraordinary No. 1670/33 as amended), recruited officers manage public funds, ensure adherence to Government Financial Regulations (FR), implement treasury policies, and safeguard state accountability.

Exam sponsor: Conducted by the Commissioner General of Examinations on the order of the Public Service Commission.. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Recruitment on the open basis runs through the Common Competitive Examination for recruitment to the posts in All-Island Services and the Executive Service Category of the public service. The First (Common) Part is Intelligence Test (100 marks, 1 1/2 hours) and Comprehension (100 marks, 2 hours); a candidate must score at least 40% in each and at least 100 marks in aggregate to reach the Second Part. The Sri Lanka Accountants' Service Second Part is Financial and Managerial Accounting (100 marks, 3 hours — Part I Financial Accounting 60 marks with one compulsory Sri Lanka Accounting Standards question and two of four others, Part II Managerial Accounting 40 marks answering two of three) and Advanced Auditing and Economic Analysis (100 marks, 3 hours — Part I Advanced Auditing 60 marks answering three of five, Part II Economic Analysis 40 marks answering two of three). Only a general interview follows, to verify qualifications, and it carries no marks.

Time Limit

9 1/2 hours across four written papers.

Passing Score

At least 40% in every written paper, plus at least 100 aggregate marks across the two Common Part papers to reach the Second Part; selection strictly by written merit order because the interview carries no marks.

Exam / Certification Fees

Rs. 1,000.00 for the First (Common) Part plus Rs. 300.00 per Second Part paper (Rs. 1,600.00 in total).

Exam sponsor website

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

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 and Reporting

Maps to Part I of the Financial and Managerial Accounting paper: LKAS 1, 2, 7, 8, 16, 36 and 37, SLFRS 15, bank reconciliation, suspense accounts and error correction, provisions and contingencies, revaluation, impairment and component depreciation, and ratio analysis.

25%

Managerial Accounting and Costing

Maps to Part II of the same paper: cost behaviour, marginal and absorption costing, break-even and margin of safety, standard costing variances, functional budgets, limiting-factor decisions, EOQ, working capital and the cash conversion cycle, and investment appraisal by payback, ARR, NPV and IRR.

25%

Auditing, Internal Control and Accountability

Maps to Part I of the Advanced Auditing and Economic Analysis paper: the constitutional position of the Auditor-General, the National Audit Act, audit risk and materiality, evidence and sampling, internal control frameworks, audit opinions under SLAuS 705, performance (value-for-money) audit, and parliamentary oversight through COPA and COPE.

25%

Public Financial Management and Financial Regulations

Government financial administration used daily by Accountants' Service officers — Articles 148 to 151 of the Constitution, Chief Accounting Officers and Accounting Officers, vote ledgers and commitment control, virement, imprests, procurement committees, retention and liquidated damages, and the lapse of votes. It supports the fiscal-policy strand of Part II (Economic Analysis) and the compliance and legal-responsibility strands of Advanced Auditing, and is the core of the Accountants' Service limited-stream and efficiency bar examinations; treat it as professional grounding rather than a separate open-examination paper.

Preparing for the Sri Lanka Accountants' Service Exam Exam

What You Need to Know

  • Passing score: At least 40% in every written paper, plus at least 100 aggregate marks across the two Common Part papers to reach the Second Part; selection strictly by written merit order because the interview carries no marks.
  • Assessment: Recruitment on the open basis runs through the Common Competitive Examination for recruitment to the posts in All-Island Services and the Executive Service Category of the public service. The First (Common) Part is Intelligence Test (100 marks, 1 1/2 hours) and Comprehension (100 marks, 2 hours); a candidate must score at least 40% in each and at least 100 marks in aggregate to reach the Second Part. The Sri Lanka Accountants' Service Second Part is Financial and Managerial Accounting (100 marks, 3 hours — Part I Financial Accounting 60 marks with one compulsory Sri Lanka Accounting Standards question and two of four others, Part II Managerial Accounting 40 marks answering two of three) and Advanced Auditing and Economic Analysis (100 marks, 3 hours — Part I Advanced Auditing 60 marks answering three of five, Part II Economic Analysis 40 marks answering two of three). Only a general interview follows, to verify qualifications, and it carries no marks.
  • Time limit: 9 1/2 hours across four written papers.
  • Exam / certification fees: Rs. 1,000.00 for the First (Common) Part plus Rs. 300.00 per Second Part paper (Rs. 1,600.00 in total). Official sources

Using Our Practice Resources

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Sri Lanka Accountants' Service Exam: Suggested Study Strategy

1Master Sri Lanka Government Financial Regulations (FR Part I): Thoroughly study regulations governing the custody of public money, imprest accounting, vote ledgers, payment procedures, and Technical Evaluation Committee (TEC) procurement thresholds.
2Practice numerical accounting calculations regularly: Solve hands-on problems on depreciation under LKAS 16, inventory valuation under LKAS 2, variance analysis in standard costing, break-even analysis, and capital budgeting (NPV/ARR) using Sri Lankan Rupees (Rs.).
3Understand constitutional and statutory oversight: Review Articles 148 to 154 of the 1978 Constitution of Sri Lanka, the National Audit Act No. 19 of 2018, and the roles of the Auditor General, Committee on Public Accounts (COPA), and Committee on Public Enterprises (COPE).

Frequently Asked Questions

What is the examination structure for the SLAcS Grade III Open Recruitment?

On the open basis the Sri Lanka Accountants' Service is recruited through the Common Competitive Examination for the posts in All-Island Services and the Executive Service Category. The First (Common) Part is an Intelligence Test (100 marks, 1 1/2 hours, 50 items) and a Comprehension paper (100 marks, 2 hours, 50 items). Candidates scoring at least 40% in each and 100 marks in aggregate go on to the Accountants' Service Second Part: Financial and Managerial Accounting (100 marks, 3 hours) and Advanced Auditing and Economic Analysis (100 marks, 3 hours), each set in two parts worth 60 and 40 marks. A 40% minimum applies to every paper, and only a general interview follows to verify qualifications.

Who is eligible to sit the Open Competitive Examination for the Sri Lanka Accountants' Service?

Applicants must be Sri Lankan citizens of excellent character who are physically and mentally fit to serve anywhere in the country, and at least 22 years old when the notice calling applications is gazetted; the upper age limit is set per service in that notification. The qualification routes are a degree in Commerce, Management, Accountancy or Economics; a Higher Diploma in Accountancy or Commerce or a Higher National Diploma in Management from the Sri Lanka Technical College or SLIATE; or an intermediate or higher stage of CA Sri Lanka, CIMA, the Institute of Certified Accountants, ACCA, ICSA, or the Institute of Certified Management Accountants of Sri Lanka. Full professional membership is not required.

How important are the Sri Lanka Financial Regulations (FR) in this examination?

Government Financial Regulations are not a separate paper in the open competitive examination — the two service-specific papers are Financial and Managerial Accounting and Advanced Auditing and Economic Analysis. They matter all the same: the Advanced Auditing syllabus covers compliance and value-for-money audit and the legal responsibilities of accountants and auditors, the Economic Analysis syllabus covers fiscal policy, and Financial Regulations govern the work an Accountants' Service officer does from the day of appointment and are examined directly in the Service's limited-stream and efficiency bar examinations. This bank therefore devotes a quarter of its questions to them as professional grounding.

Does OpenExamPrep provide official examination papers for the SLAcS Exam?

No. OpenExamPrep is an independent educational platform and is not affiliated with the Ministry of Public Administration, the Public Service Commission or the Department of Examinations. These 100 questions are independent Sri Lanka Accountants' Service practice by OpenExamPrep, written to cover the subject areas the open competitive examination tests - Sri Lanka Accounting Standards and financial reporting, managerial accounting, advanced auditing, economic analysis and public financial management. They are not official past papers, and because two of the four papers are written papers rather than multiple-choice, this bank is an English-language study adaptation rather than a simulation of the examination's format.