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.

• 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

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

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