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

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About the Financial Accounting Test

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

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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 15,000+ questions. The actual questions on this Financial Accounting Test will be non-googleable.

🧐 Question
Medium Earnings Per Share Financial Calculations Eps Calculation	Solve
Consider the following financial data for 3 companies (in millions) for the year 2022: Which company has the highest Earnings Per Share (EPS) if each company has 50 million outstanding shares?
Medium Net cash receipt on issued bonds Bond Issuance Accounting Debt Financing	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 Return On Equity/investment Analysis	Solve
Consider the following financial data for five companies for the year 2022: Which company has the highest Return on Capital Employed (ROCE)?
Easy Hedge risk using derivates Financial Reporting Risk Assessment Derivatives	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?
Medium Land Sale Balance Sheet Asset Classification Acquisition Accounting	Solve
Here’s the balance sheet for SinkedIn Ltd as of December 31, 2022: 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: 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) 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 Financial Calculations Eps Calculation	3 mins Finance	Solve
Consider the following financial data for 3 companies (in millions) for the year 2022: Which company has the highest Earnings Per Share (EPS) if each company has 50 million outstanding shares?
	Medium Net cash receipt on issued bonds Bond Issuance Accounting Debt Financing	3 mins Finance	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 Return On Equity/investment Analysis	3 mins Finance	Solve
Consider the following financial data for five companies for the year 2022: Which company has the highest Return on Capital Employed (ROCE)?
	Easy Hedge risk using derivates Financial Reporting Risk Assessment Derivatives	2 mins Finance	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	2 mins Accounting	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?
	Medium Land Sale Balance Sheet Asset Classification Acquisition Accounting	3 mins Accounting	Solve
Here’s the balance sheet for SinkedIn Ltd as of December 31, 2022: 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: 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	3 mins Accounting	Solve
Review the following balance Sheet for Company Sinclair as of December 31, 2023 (in thousands of dollars) 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	💪 Difficulty	⌛ Time
	Earnings Per Share Financial Calculations Eps Calculation	Finance	Medium	3 mins	Solve
Consider the following financial data for 3 companies (in millions) for the year 2022: Which company has the highest Earnings Per Share (EPS) if each company has 50 million outstanding shares?
	Net cash receipt on issued bonds Bond Issuance Accounting Debt Financing	Finance	Medium	3 mins	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?
	Return on Capital Employed Return On Equity/investment Analysis	Finance	Medium	3 mins	Solve
Consider the following financial data for five companies for the year 2022: Which company has the highest Return on Capital Employed (ROCE)?
	Hedge risk using derivates Financial Reporting Risk Assessment Derivatives	Finance	Easy	2 mins	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?
	Comprehensive income Income statement	Accounting	Medium	2 mins	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?
	Land Sale Balance Sheet Asset Classification Acquisition Accounting	Accounting	Medium	3 mins	Solve
Here’s the balance sheet for SinkedIn Ltd as of December 31, 2022: 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: Which of the following rows are erroneous rows in the balance sheet after the acquisition?
	Sell off long-term investment Balance Sheet Dividend distributions Equity transactions	Accounting	Medium	3 mins	Solve
Review the following balance Sheet for Company Sinclair as of December 31, 2023 (in thousands of dollars) 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?

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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

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Have questions about the Financial Accounting Hiring Test?

What is Financial Accounting Test?

The Financial Accounting Test evaluates knowledge in financial statements, accounting principles, and more. Recruiters use it to find candidates with essential accounting skills, ensuring better hiring decisions.

Can I combine Financial Accounting Test with Financial Analysis questions?

Yes, recruiters can request a custom test with multiple skills. For more details on assessing Financial Analysis skills, check out the Financial Analyst Test.

What topics are covered in the Financial Accounting Test?

The test covers various topics, including Financial Statements, Double-Entry Bookkeeping, Assets and Liabilities, Income and Expense Recognition, Inventory Valuation, and Depreciation and Amortization.

How to use Financial Accounting Test in my hiring process?

Use it as a pre-screening tool at the start of your recruitment process. Add a link to the job post or invite candidates via email. This approach identifies skilled candidates quickly.

What are the main Accounting tests?

Important accounting tests apart from Financial Accounting Test include:

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.

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