100+ Free NBAA CPA Final Practice Questions

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2026 Statistics

Key Facts: NBAA CPA Final Exam

40%

Passing Score

NBAA Tanzania Board Guidelines

TZS 160K

Fee per Subject

NBAA Standard Exam Fee

12 hours

Total Exam Time

4 papers × 3 hours each

30-45%

Average Pass Rate

Historical Subject Statistics

18%

Mainland VAT Rate

Tanzania VAT Act 2014

TZS 200M

VAT Registration

Mainland turnover threshold

Tanzania's NBAA CPA Final Level consists of 4 papers: Corporate Reporting (C1), Audit and Assurance (C2), Business Finance (C3), and Advanced Taxation (C4). Each paper is a 3-hour written exam. The minimum passing mark is 40% per subject. Total exam fees are TZS 160,000 per subject plus annual student subscription fees. Pass rates range between 30% and 45%.

Sample NBAA CPA Final Practice Questions

Try these sample questions to test your NBAA CPA Final exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under IFRS 3 (Business Combinations), how should an acquirer account for contingent consideration in a business combination at the acquisition date?

A.It should be recognized only when the contingency is resolved and payment becomes certain.

B.It should be recognized at fair value as part of the consideration transferred in the business combination.

C.It should be disclosed in the notes as a contingent liability and not recognized in the financial statements.

D.It should be capitalized as a separate intangible asset apart from goodwill.

Explanation: IFRS 3 requires the acquirer to recognize the acquisition-date fair value of contingent consideration as part of the consideration transferred in exchange for the acquiree. Depending on its nature, it is classified as either a financial liability or equity.

2In preparing consolidated financial statements under IFRS 10, a parent company possesses 45% of the voting rights of an investee. The remaining voting rights are widely dispersed among thousands of small shareholders, none of whom holds more than 1% individually. How should the parent assess control?

A.The parent does not have control because it holds less than a 50% majority of voting rights.

B.The parent must have a formal voting agreement with other shareholders to assert control.

C.The parent has de facto control because its holding is dominant relative to the dispersion of the other shareholdings.

D.Control cannot be determined until a shareholder vote actually takes place at the annual general meeting.

Explanation: Under IFRS 10, control can be achieved without a majority of voting rights (known as de facto control). In this case, the size of the parent's voting interest (45%) relative to the size and dispersion of the other shareholdings (all under 1%) is sufficient to conclude that the parent has the practical ability to direct the relevant activities unilaterally.

3Under IFRS 11 (Joint Arrangements), what is the key factor that distinguishes a joint operation from a joint venture?

A.The legal structure of the arrangement (whether it is structured through a separate vehicle or not).

B.Whether the parties have rights to the assets and obligations for the liabilities, or rights to the net assets of the arrangement.

C.The percentage of equity ownership held by each joint operator.

D.Whether the decisions require unanimous consent of all parties or just a simple majority.

Explanation: IFRS 11 states that the classification of a joint arrangement depends upon the rights and obligations of the parties. A joint operation exists when the parties have rights to the assets and obligations for the liabilities. A joint venture exists when the parties have rights to the net assets of the arrangement.

4Under IFRS 13 (Fair Value Measurement), which of the following is classified as a Level 3 input in the fair value hierarchy?

A.Quoted prices in active markets for identical assets that the entity can access at the measurement date.

B.Inputs other than quoted prices that are observable for the asset, such as interest rates and yield curves.

C.Unobservable inputs for the asset, developed using the best information available, including the entity's own data.

D.Quoted prices for similar assets in active markets.

Explanation: IFRS 13 establishes a three-level fair value hierarchy. Level 3 inputs are unobservable inputs for the asset or liability. They are used when observable inputs are not available, reflecting the entity's own assumptions about what market participants would use.

5A company modifies a contract with a customer to add a distinct additional product for a price that does not reflect its stand-alone selling price. Under IFRS 15, how should this contract modification be accounted for?

A.As a separate contract, with the price of the additional product recognized prospectively.

B.As a cancellation of the old contract and the creation of a new combined contract, allocating the remaining transaction price to all unsatisfied performance obligations.

C.As a cumulative catch-up adjustment to revenue on the date of modification.

D.By ignoring the modification until the entire contract is completed.

Explanation: Under IFRS 15, if a contract modification adds distinct goods or services but the price does not reflect their stand-alone selling price, it is accounted for as a termination of the old contract and the creation of a new one. The remaining consideration from the old contract plus the additional consideration is allocated to the remaining unsatisfied performance obligations.

6A lessee enters into a 5-year lease of an office building. The lease payments are TZS 50,000,000 per year, with an increase based on the consumer price index (CPI) at the end of each year. Under IFRS 16, how should the lessee initially measure the lease liability?

A.Estimate all future CPI increases and include them in the initial lease liability.

B.Measure the lease liability using the start-of-lease payments (TZS 50,000,000), ignoring future CPI changes until they occur.

C.Recognize the lease payments as an expense on a straight-line basis over the lease term.

D.Capitalize the present value of the first year's payment only and treat subsequent payments as contingent rents.

Explanation: IFRS 16 requires the lessee to measure the lease liability using the lease payments at the commencement date. Variable lease payments that depend on an index or rate (like CPI) are measured using the index or rate as at the commencement date. Future changes in the index are ignored until they actually occur, at which point the lease liability is remeasured.

7Under IFRS 9 (Financial Instruments), which of the following financial assets must be classified and measured at Fair Value Through Profit or Loss (FVTPL)?

A.A debt instrument held within a business model whose objective is to collect contractual cash flows, where the cash flows represent solely payments of principal and interest (SPPI).

B.A trade receivable that is held with the intention of factoring it to a third party before maturity to manage liquidity.

C.An equity investment that is held for trading purposes.

D.A debt instrument held to collect contractual cash flows and to sell, which passes the SPPI test.

Explanation: Equity investments held for trading must be classified as FVTPL. Other equity investments can be designated at Fair Value Through Other Comprehensive Income (FVOCI) at inception, but this option is irrevocable and not available for assets held for trading.

8Under IAS 19 (Employee Benefits), how should an entity account for net interest on the net defined benefit liability (asset)?

A.Recognize it in Other Comprehensive Income (OCI) as part of remeasurements.

B.Recognize it in Profit or Loss as part of finance costs.

C.Capitalize it as part of the cost of inventories or qualifying assets.

D.Recognize it directly in accumulated retained earnings without passing through profit or loss.

Explanation: IAS 19 requires net interest on the net defined benefit liability (asset) to be recognized in Profit or Loss. It is calculated by multiplying the net defined benefit liability (asset) by the discount rate determined at the start of the annual reporting period.

9A Tanzanian company has unused tax losses of TZS 200,000,000 at the end of the year. The company has a history of recent losses and no convincing evidence of future taxable profits. Under IAS 12 (Income Taxes), how should these unused tax losses be treated?

A.Recognize a deferred tax asset for the full tax effect of the losses (30% of TZS 200,000,000 = TZS 60,000,000).

B.Recognize a deferred tax asset only to the extent that it is probable that future taxable profits will be available against which the losses can be utilized.

C.Recognize the tax losses as a direct deduction from corporate equity.

D.Capitalize the tax losses as an intangible asset with an indefinite useful life.

Explanation: IAS 12 states that a deferred tax asset shall be recognized for the carryforward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. A history of recent losses is strong evidence that future taxable profits may not be available.

10Parent Co acquires 80% of Subsidiary Co. At the acquisition date, the fair value of Subsidiary Co's net identifiable assets is TZS 800,000,000. Parent Co elects to measure the non-controlling interest (NCI) using the proportion of net assets method. The consideration transferred is TZS 700,000,000. Calculate the goodwill arising on acquisition.

A.Goodwill of TZS 60,000,000

B.Goodwill of TZS 100,000,000

C.Goodwill of TZS 140,000,000

D.Goodwill of TZS 300,000,000

Explanation: Under the proportion of net assets method, NCI is measured as 20% of TZS 800,000,000 = TZS 160,000,000. Goodwill is calculated as: Consideration Transferred (TZS 700,000,000) + NCI (TZS 160,000,000) - Net Identifiable Assets (TZS 800,000,000) = TZS 60,000,000.

About the NBAA CPA Final Exam

The Final Level of the NBAA CPA (Tanzania) qualification tests advanced analysis, application, and evaluation across Corporate Reporting (C1), Audit and Assurance Services (C2), Business and Corporate Finance (C3), and Public Finance and Taxation II (C4). Exams are competence-based written papers.

Questions

100 scored questions

Time Limit

12 hours total (3 hours per subject)

Passing Score

40% minimum per subject

Exam Fee

TZS 160,000 per subject (National Board of Accountants and Auditors (NBAA) Tanzania)

NBAA CPA Final Exam Content Outline

25%

C1: Corporate Reporting

Group accounting, consolidated statements, IFRS compliance, employee benefits, financial instruments.

25%

C2: Audit and Assurance Services

International Standards on Auditing (ISAs), NBAA Code of Ethics, quality management, audit reports.

25%

C3: Business and Corporate Finance

Cost of capital, investment appraisal, risk management, hedging, corporate valuation.

25%

C4: Public Finance and Taxation II

Tanzanian Income Tax Act 2004, VAT Act 2014, Tax Administration Act 2015, public finance.

How to Pass the NBAA CPA Final Exam

What You Need to Know

Passing score: 40% minimum per subject
Exam length: 100 questions
Time limit: 12 hours total (3 hours per subject)
Exam fee: TZS 160,000 per subject

Keys to Passing

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

NBAA CPA Final Study Tips from Top Performers

1Learn the exact withholding tax rates for C4 (such as 5% for resident technical fees vs 15% non-resident, 10% interest, and 5% listed dividends vs 10% standard dividends).

2Master the group consolidation adjustments in C1 (specifically goodwill, non-controlling interest proportion of net assets, and unrealized profit on inventories).

3Focus on capital structure and risk hedging in C3, understanding the outcomes of currency options and forward contracts.

4Study the IESBA and NBAA Codes of Ethics threats (self-review, self-interest, advocacy, familiarity, intimidation) and safeguards, which are heavily tested in C2.

5Review the depreciable asset pools and the TZS 30,000,000 restriction on non-commercial road vehicles under Section 11 of the Income Tax Act.

6Use mock tests and practice question banks to practice time management, as the written exam gives exactly 3 hours per paper.

Frequently Asked Questions

What is the passing score for the NBAA CPA Final Level in Tanzania?

The minimum passing score for each subject of the professional examinations (including the Final Level) is 40%. A candidate who scores 40% or more in a subject is considered to have passed that subject.

How much does the NBAA CPA Final Level exam cost?

The standard examination fee is TZS 160,000 per subject, totaling TZS 640,000 for the four subjects. Candidates must also pay a TZS 70,000 professional level registration fee, a TZS 25,000 form fee, and an annual student subscription fee of TZS 85,000. Repeated subjects cost TZS 120,000 each.

What subjects are tested in the NBAA CPA Final Level?

The Final Level consists of four modules: C1 Corporate Reporting, C2 Audit and Assurance Services, C3 Business and Corporate Finance, and C4 Public Finance and Taxation II. Each module is assessed through a 3-hour written examination paper.

What is the VAT registration threshold and corporate tax rate tested in C4?

Under the Tanzanian tax laws tested in C4, the standard corporate income tax rate is 30% (reduced to 25% for newly listed DSE companies). The mandatory VAT registration threshold under the VAT Act 2014 is TZS 200 million in annual taxable turnover on the Mainland (TZS 100 million in Zanzibar).

How are subsequent events and tax depreciation treated in C1 and C4?

Under C1 (IAS 10), subsequent events are classified as adjusting (if the condition existed at the year-end) or non-adjusting (if the condition arose post-year-end). In C4, tax depreciation uses specific pools: Class 1 (computers, IT) at 37.5% diminishing value, Class 2 (heavy trucks, machinery) at 25%, Class 3 (furniture) at 12.5%, Class 6 (buildings) at 5% straight-line, and Class 8 (agricultural machinery) at 100% immediate write-off.