Search test library by skills or roles
⌘ K

Financial Accounting Online Test

About the test:

The Financial Accounting Test uses scenario-based multiple-choice questions to evaluate a candidate's knowledge and skills related to financial statements and reporting, accounting principles and concepts, budgeting and forecasting, tax compliance and planning, auditing and internal controls, financial analysis and decision-making, and financial software and tools. Candidates are evaluated on their ability to interpret and analyze financial data, apply accounting standards and regulations, and communicate financial information effectively to stakeholders.

Covered skills:

  • Financial Statements
  • Double-Entry Bookkeeping
  • Income and Expense Recognition
  • Cash Flow Statement
  • Depreciation and Amortization
  • Accounting Principles
  • Assets and Liabilities
  • Financial Ratios
  • Inventory Valuation
  • Financial Analysis

9 reasons why
9 reasons why

Adaface Financial Accounting Test is the most accurate way to shortlist Accountants



Reason #1

Tests for on-the-job skills

The Financial Accounting Online Test helps recruiters and hiring managers identify qualified candidates from a pool of resumes, and helps in taking objective hiring decisions. It reduces the administrative overhead of interviewing too many candidates and saves time by filtering out unqualified candidates at the first step of the hiring process.

The test screens for the following skills that hiring managers look for in candidates:

  • Preparing and analyzing financial statements
  • Applying accounting principles and standards
  • Implementing double-entry bookkeeping
  • Understanding assets and liabilities
  • Recognizing income and expenses
  • Calculating financial ratios
  • Interpreting cash flow statements
  • Valuating inventory
  • Calculating depreciation and amortization
  • Conducting financial analysis
Reason #2

No trick questions

no trick questions

Traditional assessment tools use trick questions and puzzles for the screening, which creates a lot of frustration among candidates about having to go through irrelevant screening assessments.

View sample questions

The main reason we started Adaface is that traditional pre-employment assessment platforms are not a fair way for companies to evaluate candidates. At Adaface, our mission is to help companies find great candidates by assessing on-the-job skills required for a role.

Why we started Adaface
Reason #3

Non-googleable questions

We have a very high focus on the quality of questions that test for on-the-job skills. Every question is non-googleable and we have a very high bar for the level of subject matter experts we onboard to create these questions. We have crawlers to check if any of the questions are leaked online. If/ when a question gets leaked, we get an alert. We change the question for you & let you know.

How we design questions

These are just a small sample from our library of 10,000+ questions. The actual questions on this Financial Accounting Test will be non-googleable.

🧐 Question

Medium

Earnings Per Share
Solve
Consider the following financial data for 3 companies (in millions) for the year 2022:
 image
Which company has the highest Earnings Per Share (EPS) if each company has 50 million outstanding shares?

Medium

Net cash receipt on issued bonds
Solve
Gajni Inc. issued 2000 $100 9% bonds on May 1 (year 1). These bonds are issued at 103 plus accrued interest. The bonds are dated Jan 1 (year 1) and mature on Jan 1 (year 5). Interest needs to be paid twice a year (Jan 1 and July 1). The cost of issuing the bonds, $5000 was paid by Gajni Inc. to the investment bank. What would be the net cash receipt realized by Gajni Inc. from the issuance of these bonds?

Medium

Return on Capital Employed
Solve
Consider the following financial data for five companies for the year 2022:
 image
Which company has the highest Return on Capital Employed (ROCE)?

Easy

Hedge risk using derivates
Solve
Phenomenal Pte. Ltd., a Singapore based company secured a new client in Germany for their SaaS business, and is expecting to receive a payment of EUR 1.3 million after 6 weeks. They want to be certain of the amount they receive and plan on using the derivates market to hedge the risk. What action would you recommend?

Medium

Comprehensive income
Income statement
Solve
ProCoder Inc. reported the following information on Dec 31st. If we ignore income tax, what should ProCoder report as comprehensive income as of Dec 31?
 image

Medium

Land Sale
Balance Sheet
Asset Classification
Acquisition Accounting
Solve
Here’s the balance sheet for SinkedIn Ltd as of December 31, 2022:
 image
SinkedIn Ltd acquires a smaller company for $100,000 cash. The acquisition adds $60,000 in goodwill and increases the long-term investments by $40,000. 

Here’s the new balance sheet created after these changes:
 image
Which of the following rows are erroneous rows in the balance sheet after the acquisition?

Medium

Sell off long-term investment
Balance Sheet
Dividend distributions
Equity transactions
Solve
Review the following balance Sheet for Company Sinclair as of December 31, 2023 (in thousands of dollars)
 image
 image
Suppose that Company Sinclair has a tax rate of 30%. What will be the company's new equity balance if the company sells all its long-term investments at their book value, pays off all its short-term debt, and distributes the remaining cash as a dividend to shareholders?
🧐 Question🔧 Skill

Medium

Earnings Per Share

3 mins

Finance
Solve

Medium

Net cash receipt on issued bonds

3 mins

Finance
Solve

Medium

Return on Capital Employed

3 mins

Finance
Solve

Easy

Hedge risk using derivates

2 mins

Finance
Solve

Medium

Comprehensive income
Income statement

2 mins

Accounting
Solve

Medium

Land Sale
Balance Sheet
Asset Classification
Acquisition Accounting

3 mins

Accounting
Solve

Medium

Sell off long-term investment
Balance Sheet
Dividend distributions
Equity transactions

3 mins

Accounting
Solve
🧐 Question🔧 Skill💪 Difficulty⌛ Time
Earnings Per Share
Finance
Medium3 mins
Solve
Net cash receipt on issued bonds
Finance
Medium3 mins
Solve
Return on Capital Employed
Finance
Medium3 mins
Solve
Hedge risk using derivates
Finance
Easy2 mins
Solve
Comprehensive income
Income statement
Accounting
Medium2 mins
Solve
Land Sale
Balance Sheet
Asset Classification
Acquisition Accounting
Accounting
Medium3 mins
Solve
Sell off long-term investment
Balance Sheet
Dividend distributions
Equity transactions
Accounting
Medium3 mins
Solve
Reason #4

1200+ customers in 75 countries

customers in 75 countries
Brandon

With Adaface, we were able to optimise our initial screening process by upwards of 75%, freeing up precious time for both hiring managers and our talent acquisition team alike!


Brandon Lee, Head of People, Love, Bonito

Reason #5

Designed for elimination, not selection

The most important thing while implementing the pre-employment Financial Accounting Test in your hiring process is that it is an elimination tool, not a selection tool. In other words: you want to use the test to eliminate the candidates who do poorly on the test, not to select the candidates who come out at the top. While they are super valuable, pre-employment tests do not paint the entire picture of a candidate’s abilities, knowledge, and motivations. Multiple easy questions are more predictive of a candidate's ability than fewer hard questions. Harder questions are often "trick" based questions, which do not provide any meaningful signal about the candidate's skillset.

Science behind Adaface tests
Reason #6

1 click candidate invites

Email invites: You can send candidates an email invite to the Financial Accounting Test from your dashboard by entering their email address.

Public link: You can create a public link for each test that you can share with candidates.

API or integrations: You can invite candidates directly from your ATS by using our pre-built integrations with popular ATS systems or building a custom integration with your in-house ATS.

invite candidates
Reason #7

Detailed scorecards & benchmarks

View sample scorecard
Reason #8

High completion rate

Adaface tests are conversational, low-stress, and take just 25-40 mins to complete.

This is why Adaface has the highest test-completion rate (86%), which is more than 2x better than traditional assessments.

test completion rate
Reason #9

Advanced Proctoring


Learn more

About the Financial Accounting Assessment Test

Why you should use Pre-employment Financial Accounting Online Test?

The Financial Accounting Test makes use of scenario-based questions to test for on-the-job skills as opposed to theoretical knowledge, ensuring that candidates who do well on this screening test have the relavant skills. The questions are designed to covered following on-the-job aspects:

  • Preparing and analyzing financial statements to assess the financial health of a company
  • Applying accounting principles and standards to record financial transactions accurately
  • Executing double-entry bookkeeping to maintain proper financial records
  • Identifying and classifying assets and liabilities for proper financial reporting
  • Recognizing and recording income and expenses in accordance with relevant guidelines
  • Calculating and interpreting financial ratios to evaluate a company's performance
  • Preparing a comprehensive cash flow statement to track the inflow and outflow of cash
  • Valuing inventory accurately using appropriate methods and techniques
  • Applying depreciation and amortization methods to allocate the cost of assets over time
  • Performing financial analysis using various tools and techniques to evaluate business performance

Once the test is sent to a candidate, the candidate receives a link in email to take the test. For each candidate, you will receive a detailed report with skills breakdown and benchmarks to shortlist the top candidates from your pool.

What topics are covered in the Financial Accounting Online Test?

  • Financial Statements

    Financial statements are the reports that summarize the financial activities and position of a business entity. These statements provide an insight into the financial performance of a company and are fundamental for decision-making and analysis.

  • Accounting Principles

    Accounting principles are the guidelines and rules that govern the field of accounting. They provide a framework for recording, analyzing, and reporting financial transactions in a consistent and accurate manner, ensuring transparency and reliability.

  • Double-Entry Bookkeeping

    Double-entry bookkeeping is a method of recording financial transactions that requires every transaction to have an equal and opposite entry in at least two accounts. This system helps maintain the balance of the accounting equation and allows for accurate financial reporting and analysis.

  • Assets and Liabilities

    Assets are resources owned by a company that have monetary value, such as cash, inventory, or property. Liabilities, on the other hand, are the financial obligations or debts of a company, such as loans or accounts payable. Measuring knowledge of assets and liabilities helps assess a candidate's understanding of a company's financial position.

  • Income and Expense Recognition

    Income and expense recognition is the process of recording and reporting revenue and expenses in the appropriate accounting period. It ensures that revenue is recognized when it is earned and expenses are recognized when they are incurred, accurately reflecting the financial performance of a company.

  • Financial Ratios

    Financial ratios are mathematical calculations used to evaluate a company's financial performance, liquidity, solvency, and profitability. These ratios provide meaningful insights into the efficiency and effectiveness of a company's operations and help in financial decision-making and analysis.

  • Cash Flow Statement

    A cash flow statement is a financial statement that shows the inflows and outflows of cash within a company during a specific period. It provides a summary of how cash is generated and used, allowing for analysis of a company's liquidity and ability to meet its financial obligations.

  • Inventory Valuation

    Inventory valuation is the process of assigning a monetary value to a company's inventory. It is important for financial reporting purposes and helps in assessing a company's profitability, inventory turnover, and overall financial health.

  • Depreciation and Amortization

    Depreciation and amortization are accounting methods used to allocate the costs of tangible and intangible assets over their useful lives. They help in determining the true cost of using assets and accurately reflecting their value in the financial statements.

  • Financial Analysis

    Financial analysis involves examining financial statements, ratios, and other financial data to evaluate the performance and health of a company. It helps in identifying trends, strengths, weaknesses, and making informed decisions about investment, credit, and overall financial strategies.

  • Full list of covered topics

    The actual topics of the questions in the final test will depend on your job description and requirements. However, here's a list of topics you can expect the questions for Financial Accounting Test to be based on.

    Financial Statements
    Income Statement
    Balance Sheet
    Statement of Cash Flows
    Statement of Stockholders' Equity
    Accounting Principles
    Revenue Recognition
    Matching Principle
    Materiality Principle
    Consistency Principle
    Double-Entry Bookkeeping
    General Ledger
    Journal Entries
    Debits and Credits
    Trial Balance
    Assets and Liabilities
    Current Assets
    Noncurrent Assets
    Current Liabilities
    Noncurrent Liabilities
    Income and Expense Recognition
    Accrual Accounting
    Cash Accounting
    Deferred Revenue
    Accrued Expenses
    Financial Ratios
    Liquidity Ratios
    Profitability Ratios
    Solvency Ratios
    Efficiency Ratios
    Cash Flow Statement
    Operating Activities
    Investing Activities
    Financing Activities
    Noncash Investing and Financing Activities
    Inventory Valuation
    FIFO
    LIFO
    Weighted Average
    Specific Identification
    Depreciation and Amortization
    Straight Line Depreciation
    Double Declining Balance Depreciation
    Units of Production Depreciation
    Sum-of-the-Years-Digits Depreciation
    Amortization
    Financial Analysis
    SWOT Analysis
    Ratio Analysis
    Vertical Analysis
    Horizontal Analysis
    DuPont Analysis
    Common-Size Analysis
    Cost-Volume-Profit Analysis
    Benchmarking

What roles can I use the Financial Accounting Online Test for?

  • Accountant
  • Financial Analyst
  • Auditor
  • Tax Professional
  • Claims Adjuster
  • Risk Manager

How is the Financial Accounting Online Test customized for senior candidates?

For intermediate/ experienced candidates, we customize the assessment questions to include advanced topics and increase the difficulty level of the questions. This might include adding questions on topics like

  • Conducting advanced financial reporting and analysis for decision-making purposes
  • Preparing financial forecasts and budgeting to support planning and control activities
  • Implementing internal controls and auditing procedures to ensure financial integrity
  • Understanding and applying international financial reporting standards (IFRS) for global operations
  • Utilizing financial management software to streamline accounting processes
  • Applying cost accounting techniques to track and control expenses
  • Understanding and analyzing business taxation requirements and regulations
  • Managing foreign currency transactions and exchange rate fluctuations
  • Performing risk assessment and management to mitigate financial uncertainties
  • Implementing effective internal and external communication strategies related to financial information
Singapore government logo

The hiring managers felt that through the technical questions that they asked during the panel interviews, they were able to tell which candidates had better scores, and differentiated with those who did not score as well. They are highly satisfied with the quality of candidates shortlisted with the Adaface screening.


85%
reduction in screening time

Financial Accounting Hiring Test FAQs

Can I combine multiple skills into one custom assessment?

Yes, absolutely. Custom assessments are set up based on your job description, and will include questions on all must-have skills you specify. Here's a quick guide on how you can request a custom test.

Do you have any anti-cheating or proctoring features in place?

We have the following anti-cheating features in place:

  • Non-googleable questions
  • IP proctoring
  • Screen proctoring
  • Web proctoring
  • Webcam proctoring
  • Plagiarism detection
  • Secure browser
  • Copy paste protection

Read more about the proctoring features.

How do I interpret test scores?

The primary thing to keep in mind is that an assessment is an elimination tool, not a selection tool. A skills assessment is optimized to help you eliminate candidates who are not technically qualified for the role, it is not optimized to help you find the best candidate for the role. So the ideal way to use an assessment is to decide a threshold score (typically 55%, we help you benchmark) and invite all candidates who score above the threshold for the next rounds of interview.

What experience level can I use this test for?

Each Adaface assessment is customized to your job description/ ideal candidate persona (our subject matter experts will pick the right questions for your assessment from our library of 10000+ questions). This assessment can be customized for any experience level.

Does every candidate get the same questions?

Yes, it makes it much easier for you to compare candidates. Options for MCQ questions and the order of questions are randomized. We have anti-cheating/ proctoring features in place. In our enterprise plan, we also have the option to create multiple versions of the same assessment with questions of similar difficulty levels.

I'm a candidate. Can I try a practice test?

No. Unfortunately, we do not support practice tests at the moment. However, you can use our sample questions for practice.

What is the cost of using this test?

You can check out our pricing plans.

Can I get a free trial?

Yes, you can sign up for free and preview this test.

I just moved to a paid plan. How can I request a custom assessment?

Here is a quick guide on how to request a custom assessment on Adaface.

customers across world
Join 1200+ companies in 75+ countries.
Try the most candidate friendly skills assessment tool today.
g2 badges
Ready to use the Adaface Financial Accounting Test?
Ready to use the Adaface Financial Accounting Test?
logo
40 min tests.
No trick questions.
Accurate shortlisting.
Terms Privacy Trust Guide
ada
Ada
● Online
Previous
Score: NA
Next
✖️