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100+ Free NBAA CPA Intermediate Practice Questions

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2026 Statistics

Key Facts: NBAA CPA Intermediate Exam

40%

Passing Score

NBAA Tanzania Board Guidelines

TZS 160K

Fee per Subject

NBAA Standard Exam Fee

18 hours

Total Exam Time

6 papers × 3 hours each

35-50%

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 Intermediate Level consists of 6 papers: Financial Management (B1), Financial Reporting (B2), Auditing Principles and Practice (B3), Public Finance and Taxation I (B4), Performance Management (B5), and Management, Governance and Ethics (B6). 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 35% and 50%.

Sample NBAA CPA Intermediate Practice Questions

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

1A company in Tanzania is evaluating an investment project with a cost of TZS 200 million. The project is expected to generate nominal cash flows of TZS 80 million in year 1, TZS 100 million in year 2, and TZS 90 million in year 3. The general inflation rate is 5% per annum, and the company's real cost of capital is 8%. What is the Net Present Value (NPV) of this project in nominal terms?
A.-TZS 10.45 million
B.TZS 10.03 million
C.TZS 22.84 million
D.TZS 32.18 million
Explanation: Under the Fisher effect, the nominal cost of capital is (1 + m) = (1 + r)(1 + i) = 1.08 * 1.05 = 1.134, or 13.4%. Discounting the nominal cash flows yields: NPV = -200 + 80/(1.134)^1 + 100/(1.134)^2 + 90/(1.134)^3 = -200 + 70.55 + 77.76 + 61.72 = TZS 10.03 million.
2Mbeya Cement Co. has TZS 120 million available for capital investment in the current year. The company is facing single-period capital rationing and has identified three independent, divisible projects with the following details: - Project X: Initial Outlay = TZS 60 million, NPV = TZS 18 million - Project Y: Initial Outlay = TZS 80 million, NPV = TZS 20 million - Project Z: Initial Outlay = TZS 50 million, NPV = TZS 14 million What is the maximum NPV that can be achieved?
A.TZS 38.0 million
B.TZS 32.0 million
C.TZS 34.0 million
D.TZS 34.5 million
Explanation: Since the projects are divisible, the profitability index (PI = NPV / Initial Outlay) should be used to rank them: PI_X = 18/60 = 0.30; PI_Y = 20/80 = 0.25; PI_Z = 14/50 = 0.28. Ranks: 1st is Project X, 2nd is Project Z, 3rd is Project Y. Optimal allocation: Invest fully in Project X (TZS 60m, NPV TZS 18m) and Project Z (TZS 50m, NPV TZS 14m), using TZS 110m and leaving TZS 10m. The remaining TZS 10m is invested in Project Y to yield a proportional NPV of (10/80) * 20 = TZS 2.5m. Total NPV = 18 + 14 + 2.5 = TZS 34.5 million.
3A Tanzanian firm has a capital structure consisting of 60% equity and 40% debt by market value. The cost of equity is 15%, and the pre-tax cost of debt is 10%. If the corporate tax rate in Tanzania is 30%, what is the Weighted Average Cost of Capital (WACC) for the firm?
A.11.8%
B.13.0%
C.10.6%
D.12.4%
Explanation: The post-tax cost of debt is calculated as pre-tax cost of debt * (1 - T) = 10% * (1 - 0.30) = 7%. Using the market weights, WACC = (Weight of Equity * Cost of Equity) + (Weight of Debt * Post-tax Cost of Debt) = (0.60 * 15%) + (0.40 * 7%) = 9.0% + 2.8% = 11.8%.
4A company listed on the Dar es Salaam Stock Exchange (DSE) has a beta coefficient of 1.2. The risk-free rate in Tanzania (based on Treasury bills) is 9%, and the expected market return is 14%. According to the Capital Asset Pricing Model (CAPM), what is the cost of equity for the company?
A.15.0%
B.16.8%
C.14.0%
D.15.8%
Explanation: Under the Capital Asset Pricing Model (CAPM), Cost of Equity (Ke) = Rf + Beta * (Rm - Rf), where Rf is the risk-free rate (9%) and Rm is the market return (14%). Ke = 9% + 1.2 * (14% - 9%) = 9% + 1.2 * 5% = 9% + 6% = 15.0%.
5A manufacturing company in Arusha has an average inventory holding period of 45 days, an average receivables collection period of 30 days, and an average payables payment period of 40 days. What is the length of the company's cash conversion cycle (net operating cycle)?
A.35 days
B.115 days
C.75 days
D.55 days
Explanation: The cash conversion cycle is calculated as: Inventory Holding Period + Receivables Collection Period - Payables Payment Period = 45 days + 30 days - 40 days = 35 days.
6Tanga Trading Co. is considering offering an early payment discount of 1.5% for payment within 10 days, instead of its normal 45-day credit period. What is the approximate annualized cost (compounded) of this discount to the company, assuming a 365-day year?
A.12.5%
B.16.9%
C.14.2%
D.17.1%
Explanation: The credit period is reduced by 45 - 10 = 35 days. The cost of the discount is calculated using the formula: Cost of discount = (1 + (Discount / (100 - Discount)))^(365 / Credit period difference) - 1. Cost = (1 + (1.5 / 98.5))^(365 / 35) - 1 = (1.015228)^10.42857 - 1 = 1.1711 - 1 = 17.11%.
7A company has an annual demand of 20,000 units for a raw material. The ordering cost is TZS 10,000 per order, and the holding cost is TZS 400 per unit per year. What is the Economic Order Quantity (EOQ) for this raw material?
A.500 units
B.1,000 units
C.707 units
D.1,414 units
Explanation: The Economic Order Quantity (EOQ) is calculated using the formula: EOQ = sqrt((2 * D * Co) / Ch), where D is annual demand (20,000), Co is ordering cost (TZS 10,000), and Ch is holding cost (TZS 400). EOQ = sqrt((2 * 20,000 * 10,000) / 400) = sqrt(400,000,000 / 400) = sqrt(1,000,000) = 1,000 units.
8In corporate finance, what is the primary difference between a rights issue and a public offer of shares?
A.A rights issue is only offered to the general public, whereas a public offer is only offered to institutional investors.
B.A rights issue is offered to existing shareholders in proportion to their current holdings, whereas a public offer is made to the general public.
C.A rights issue does not dilute ownership control, whereas a public offer always maintains the exact current shareholding ratios.
D.A rights issue requires shares to be issued at the current market price, whereas a public offer is always priced at a premium.
Explanation: A rights issue is an invitation to existing shareholders to purchase additional new shares in proportion to their existing holdings, usually at a discount to the market price. A public offer is made to the general public, which can dilute existing ownership.
9A Tanzanian importer owes EUR 100,000 payable in 3 months. The spot exchange rate is TZS 2,800/EUR. The 3-month forward exchange rate is TZS 2,840/EUR. If the importer decides to hedge the exchange rate risk using a forward contract, how much will they pay in TZS in 3 months?
A.TZS 280,000,000
B.TZS 284,000,000
C.TZS 276,000,000
D.TZS 282,000,000
Explanation: By locking in the 3-month forward rate, the importer agrees to buy EUR at the specified rate in 3 months. Therefore, the payment will be EUR 100,000 * TZS 2,840/EUR = TZS 284,000,000. This eliminates the risk of unfavorable spot rate fluctuations.
10Which of the following describes the key principle of Islamic financing known as 'Mudarabah'?
A.A partnership where all partners contribute both capital and labor, and share profits and losses equally.
B.A sale contract where the seller discloses the cost and profit margin, and the buyer pays in installments.
C.A partnership contract where one party provides the capital (Rab-al-maal) and the other provides the expertise/labor (Mudarib).
D.A leasing agreement where the bank purchases an asset and leases it to the client for a rental fee, with ownership transferring at the end.
Explanation: Mudarabah is a profit-sharing partnership where one partner provides the capital (Rab-al-maal) and the other manages the enterprise (Mudarib). Profits are shared according to a pre-agreed ratio, but financial losses are borne solely by the capital provider, provided there is no negligence.

About the NBAA CPA Intermediate Exam

The Intermediate Level of the NBAA CPA (Tanzania) qualification tests intermediate application, analysis, and evaluation across six subjects: Financial Management (B1), Financial Reporting (B2), Auditing Principles and Practice (B3), Public Finance and Taxation I (B4), Performance Management (B5), and Management, Governance and Ethics (B6). Exams are competence-based written papers.

Questions

100 scored questions

Time Limit

18 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 Intermediate Exam Content Outline

17%

B1: Financial Management

Investment appraisal (NPV, IRR), cost of capital (WACC, CAPM), working capital, leasing, exchange rate hedging.

17%

B2: Financial Reporting

IFRS standards compliance, group consolidation accounts, statement of cash flows, financial analysis ratios.

16%

B3: Auditing Principles and Practice

Ethics (IESBA Code), audit planning, audit risk assessment, internal controls testing, audit opinions.

17%

B4: Public Finance and Taxation I

Tanzanian Income Tax Act 2004, VAT Act 2014, Tax Administration Act 2015, capital allowances, withholding taxes, public finance.

17%

B5: Performance Management

Costing methods, activity-based costing (ABC), budgeting, standard costing and variance analysis, CVP analysis.

16%

B6: Management, Governance and Ethics

Management functions and motivation, corporate governance principles, risk management (COSO), business ethics.

How to Pass the NBAA CPA Intermediate Exam

What You Need to Know

  • Passing score: 40% minimum per subject
  • Exam length: 100 questions
  • Time limit: 18 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 Intermediate Study Tips from Top Performers

1Learn the exact withholding tax rates for B4 (such as 5% for resident technical fees vs 15% non-resident, 10% interest, and 5% listed dividends vs 10% standard dividends).
2Master the preparation of financial statements under IFRS (IAS 1, IAS 16, IAS 36, IFRS 15, IFRS 16) and basic group consolidation adjustments in B2.
3Understand investment appraisal methods in B1, including NPV, IRR, and payback period, and WACC calculations.
4Focus on cost accumulation systems, standard costing, and variance analysis in B5 (specifically labor, material, and overhead variances).
5Study the IESBA Code of Ethics threats and safeguards, which are heavily tested in B3 alongside internal controls audit procedures.
6Review corporate governance principles (board composition, committees, OECD guidelines) and corporate social responsibility frameworks for B6.

Frequently Asked Questions

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

The minimum passing score for each subject of the professional examinations (including the Intermediate 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 Intermediate Level exam cost?

The standard examination fee is TZS 160,000 per subject, totaling TZS 960,000 for the six 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 Intermediate Level?

The Intermediate Level consists of six modules: B1 Financial Management, B2 Financial Reporting, B3 Auditing Principles and Practice, B4 Public Finance and Taxation I, B5 Performance Management, and B6 Management, Governance and Ethics. Each module is assessed through a 3-hour written examination paper.

What are the key tax rates tested in Public Finance and Taxation I (B4)?

Under the Tanzanian tax laws tested in B4, the standard corporate income tax rate is 30%. The mainland VAT rate is 18%. Resident withholding tax rates include 5% for professional fees, 10% for interest, and 5% for dividends from DSE-listed companies (10% for unlisted).

What is the treatment of non-commercial passenger vehicles in B4 capital allowances?

Under the Third Schedule of the Tanzanian Income Tax Act 2004, the cost of acquiring non-commercial passenger road vehicles is capped at TZS 30,000,000. Any expenditure exceeding TZS 30 million is not recognized for depreciation allowance purposes, and the asset is depreciated under Class 1 at 37.5% per annum on a diminishing value basis.