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ICPAU CPA(U) Intermediate Level

Practice Questions40 questions

2026 Statistics

Key Facts: ICPAU ATD Exam

50%

Passing Score

ICPAU Rules

12 Papers

Total Subjects

ATD Syllabus

UGX 105k+

Exam Fee per Paper

ICPAU Schedule

18%

Ugandan VAT Rate

URA Guidelines

May & Nov

Exam Sessions

ICPAU Calendar

3 Hours

Time per Paper

ICPAU Rules

The ATD program in Uganda consists of three levels with a total of 12 papers. The passing mark is 50% for each paper. Examinations are held twice a year in May and November. Examination fees range from UGX 105,000 to UGX 115,000 per subject. Successful ATD graduates are granted exemptions from the entire CPA Level 1, allowing them to fast-track their journey to becoming Certified Public Accountants.

Sample ICPAU ATD Practice Questions

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

1Which of the following accounting concepts requires that business transactions are recorded separately from the personal transactions of the business owners?

A.The business entity concept

B.The going concern concept

C.The money measurement concept

D.The duality concept

Explanation: The business entity concept states that a business is a separate legal and financial entity distinct from its owners. Therefore, the personal transactions of the owner must not be mixed with the financial transactions of the business.

2A business purchased a computer for UGX 2,500,000 on credit. What is the correct double entry for this transaction?

A.Debit Office Equipment UGX 2,500,000, Credit Accounts Payable UGX 2,500,000

B.Debit Purchases UGX 2,500,000, Credit Accounts Payable UGX 2,500,000

C.Debit Cash UGX 2,500,000, Credit Office Equipment UGX 2,500,000

D.Debit Accounts Payable UGX 2,500,000, Credit Office Equipment UGX 2,500,000

Explanation: Purchasing a computer (a non-current asset) on credit increases the assets (office equipment) and increases the liabilities (accounts payable). Therefore, we debit Office Equipment and credit Accounts Payable.

3A business receives a bank statement showing a balance of UGX 1,800,000. However, the cash book shows a different balance. Upon investigation, it is found that unpresented checks total UGX 450,000 and uncredited deposits total UGX 300,000. What is the corrected balance to be shown on the bank reconciliation statement starting from the bank statement balance?

A.UGX 1,650,000

B.UGX 1,950,000

C.UGX 2,550,000

D.UGX 1,050,000

Explanation: To reconcile the bank statement balance to the adjusted cash book balance, you add uncredited deposits (money in transit) and subtract unpresented checks. Adjusted Balance = Bank Statement Balance + Uncredited Deposits - Unpresented Checks = UGX 1,800,000 + UGX 300,000 - UGX 450,000 = UGX 1,650,000.

4Which of the following errors is an error of commission?

A.A payment of UGX 120,000 to supplier A. Mukasa is debited to supplier J. Mukasa's account.

B.A purchase of a machine for UGX 5,000,000 is debited to the Repairs and Maintenance account.

C.A transaction for UGX 400,000 is completely omitted from the books of accounts.

D.A cash sale of UGX 150,000 is recorded as a debit of UGX 15,000 in Cash and credit of UGX 15,000 in Sales.

Explanation: An error of commission occurs when a transaction is recorded in the correct class of account (e.g., subsidiary accounts payable) but the wrong personal account is debited or credited (e.g., A. Mukasa instead of J. Mukasa).

5A business purchased a delivery van for UGX 40,000,000. It is estimated to have a useful life of 5 years and a residual value of UGX 5,000,000. The business uses the reducing balance method of depreciation at a rate of 25% per annum. What is the depreciation charge for the second year?

A.UGX 7,500,000

B.UGX 10,000,000

C.UGX 7,000,000

D.UGX 5,625,000

Explanation: Reducing Balance Depreciation: Year 1 = UGX 40,000,000 * 25% = UGX 10,000,000. Carrying Value at start of Year 2 = UGX 40,000,000 - UGX 10,000,000 = UGX 30,000,000. Year 2 Depreciation = UGX 30,000,000 * 25% = UGX 7,500,000. Under reducing balance, residual value is not subtracted from cost when calculating annual depreciation.

6At the start of the year, a business had prepaid insurance of UGX 120,000. During the year, insurance payments totaling UGX 800,000 were paid and recorded. At the end of the year, insurance unpaid (accrued) amounted to UGX 70,000. What is the insurance expense to be charged in the income statement for the year?

A.UGX 990,000

B.UGX 850,000

C.UGX 750,000

D.UGX 610,000

Explanation: Insurance Expense = Paid during year + Prepaid at start + Accrued at end - Prepaid at end. Here we have: UGX 800,000 (paid) + UGX 120,000 (prepaid start) + UGX 70,000 (accrued end) = UGX 990,000.

7What is the principal purpose of a trial balance?

A.To check the mathematical accuracy of double-entry postings

B.To calculate the net profit or loss for a financial period

C.To list the assets, liabilities, and capital of a business entity

D.To prove that no accounting errors have been made in the ledger

Explanation: The primary purpose of a trial balance is to verify the mathematical accuracy of the ledger accounts by showing whether total debits equal total credits. However, it does not detect errors of omission, principle, commission, or compensating errors.

8Under the perpetual inventory system, which account is debited when goods are purchased for resale?

A.Inventory

B.Purchases

C.Cost of Goods Sold

D.Accounts Payable

Explanation: In a perpetual inventory system, purchases of merchandise are recorded by debiting the Inventory account directly, reflecting the real-time asset balance. In a periodic system, the Purchases account is debited instead.

9Which of the following is classified as capital expenditure?

A.UGX 8,000,000 spent on building an extension to an office building

B.UGX 350,000 spent on painting and decorating the existing office rooms

C.UGX 1,200,000 paid for the annual insurance of delivery vans

D.UGX 450,000 spent on replacing a broken window in the warehouse

Explanation: Capital expenditure is spending on acquiring, extending, or improving non-current assets, which provides benefits lasting more than one year. Building an office extension increases the value of the non-current asset.

10A business maintains a provision for doubtful debts of 5% of trade receivables. At 31 December 2025, trade receivables stood at UGX 12,000,000, and the provision account had a credit balance of UGX 500,000. What entry is needed in the profit and loss account for the year ended 31 December 2025?

A.Debit Profit and Loss Account UGX 100,000

B.Credit Profit and Loss Account UGX 100,000

C.Debit Profit and Loss Account UGX 600,000

D.Credit Profit and Loss Account UGX 600,000

Explanation: Required provision = 5% of UGX 12,000,000 = UGX 600,000. Existing provision is UGX 500,000. This means the provision must be increased by UGX 100,000. The entry is to debit the Profit and Loss Account (as an expense) and credit the Provision for Doubtful Debts account by UGX 100,000. Wait, the question asks for the entry 'in' the profit and loss account, which is a Debit of UGX 100,000. Let's re-verify: required provision is 600,000, existing is 500,000. The difference is an increase of 100,000. An increase in provision is debited to P&L. Thus, it should be Debit Profit and Loss UGX 100,000. The correct option is Option 0.

About the ICPAU ATD Exam

The ICPAU Accounting Technicians Diploma (ATD) is Uganda's premier technical accounting qualification. It provides a direct pathway for candidates to gain advanced knowledge in bookkeeping, cost accounting, taxation, auditing, and financial management, preparing them for practical corporate roles or enabling entry into the professional CPA(U) course at Level 2.

Questions

100 scored questions

Time Limit

3 hours per paper

Passing Score

50%

Exam Fee

UGX 105,000 (Level 1) / UGX 110,000 (Level 2) / UGX 115,000 (Level 3) per subject (Institute of Certified Public Accountants of Uganda (ICPAU))

ICPAU ATD Exam Content Outline

Level I Paper 1: Principles of Accounting

Double-entry bookkeeping, prime books, bank reconciliation, and basic final accounts

Level I Paper 2: Business Communication

Communication theory, professional letters, report writing, and meetings

Level I Paper 3: Principles of Business and Company Law

Contract law, sale of goods, partnerships, and Ugandan company regulations

Level I Paper 4: Business Mathematics and Statistics

Financial arithmetic, algebraic calculations, statistics, and probability

Level II Paper 5: Principles of Cost and Management Accounting

Cost classification, material/labor/overhead pricing, costing systems, and budgeting

Level II Paper 6: Economics and Entrepreneurship

Microeconomic principles, macroeconomics, inflation, and entrepreneurship basics

Level II Paper 7: Information & Communications Technology

ICT systems, spreadsheet operations, accounting software, and data security

Level II Paper 8: Business Management

Management processes (planning, leading, control), marketing, and HR functions

Level III Paper 9: Financial Accounting

Financial statement drafting for companies, partnerships, standards (IFRS), and cash flows

Level III Paper 10: Principles of Taxation

Ugandan tax laws, individual/business income taxes, PAYE, and 18% VAT computations

Level III Paper 11: Principles of Finance

Time value of money, capital budgeting, cost of capital, and sources of finance

Level III Paper 12: Principles of Auditing

Auditing theory, internal control assessments, audit evidence, reporting, and ethics

How to Pass the ICPAU ATD Exam

What You Need to Know

Passing score: 50%
Exam length: 100 questions
Time limit: 3 hours per paper
Exam fee: UGX 105,000 (Level 1) / UGX 110,000 (Level 2) / UGX 115,000 (Level 3) 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

ICPAU ATD Study Tips from Top Performers

1Practice double-entry bookkeeping and journal entries extensively by hand for Paper 1 and Paper 9.

2Familiarize yourself with Ugandan tax laws, including VAT at 18%, corporate income tax at 30%, and PAYE structures.

3Solve past mathematical and statistical questions on time value of money, compound interest, and measures of central tendency.

4Understand the auditing process, internal control systems, and ICPAU's professional code of conduct and ethics.

5Dedicate at least 150 study hours for each level, working through the specific syllabus outline for all 4 papers of the level.

Frequently Asked Questions

What is the structure of the Uganda ATD program?

The program has 3 levels with 4 papers each: Level I (Principles of Accounting, Business Communication, Business and Company Law, Business Math & Statistics), Level II (Cost & Management Accounting, Economics & Entrepreneurship, ICT, Business Management), and Level III (Financial Accounting, Principles of Taxation, Principles of Finance, Principles of Auditing).

What are the entry requirements for ATD in Uganda?

Candidates must have at least one principal pass and two subsidiary passes at UACE (A-Level) or five credits at UCE (O-Level) including English and Mathematics, or a UNEB/UBTVEB Business Stage II certificate, or a mature age entry certificate.

Can I progress to CPA after completing the ATD?

Yes! Upon successfully completing the ATD, graduates receive full exemptions for CPA Level 1 (Foundation Level), allowing them to register and begin directly with CPA Level 2 (Intermediate Level).

How much does the ATD exam cost?

Examination fees are UGX 105,000 per paper for Level 1, UGX 110,000 per paper for Level 2, and UGX 115,000 per paper for Level 3. Additionally, there is an annual student renewal fee of UGX 120,000.

Who administers the ATD exams in Uganda?

The ATD was historically administered by ICPAU (Institute of Certified Public Accountants of Uganda) through its Public Accountants Examinations Board (PAEB). Under the TVET Act of 2025, assessment responsibilities are transitioning to the Uganda Vocational and Technical Assessment Board (UVTAB), though the qualification pathway remains aligned with ICPAU's CPA requirements.