Accounting Online Assessment Test

Why is accounting so important?

Accounting keeps you organized

Accounting lets you keep a track of how much money your business has earned and how much money it has paid out. This helps you remember how much your current profit or loss is, compared to the previous quarters.

In short, accounting allows you to know exactly what your business has been up to when it comes to business finances. It helps keep you organized so you can legally and accurately fill out your tax returns.

Accounting holds you accountable

If you have shareholders in your small business, it becomes really important to show rather than tell. Accounting helps one do just that.

Shareholders will hold you accountable for the success of your business. Just by looking at the accounting records, they can observe your business’s growth and success.

Accounting also helps you hold your employees accountable, and helps you stay up-to-date on things like performing trial balances and reconciling bank statements. That way, any fraudulent activity can be caught before it takes too much of a toll on your business.

Helps back up your tax return claims

Business owners usually dread small business tax filings, especially because they have no idea where to begin. This is where the importance of accounting in business comes in.

Step one of filing your tax return requires the gathering of financial records. Without such records (e.g., financial statements), it'll be difficult to be able to enter the correct numbers onto your returns.

If you get audited by IRS, what happens? You need to show them that you’ve done your share of due diligence and have all the necessary accounting information to back up your returns.

Helps guide decision-making

All your purchase and expenditure decisions can be made after going through your accounting records to identify whether it is feasible to make that purchase/ expense or not.

Accounting can help guide the decisions you make so you avoid common business mistakes, like:

• Overspending
• Underspending
• Plateauing

Measure new strategies with hard data

Conduct a risk analysis especially for small businesses before you make a change in your business. This way, you can determine whether taking that risk could benefit or damage your business.

With accounting, you have the numbers showing your business’s expenses and revenue before the change. After you make the change, it can be used to compare the numbers. This way, you know whether your strategy helped or hurt your business.

Necessary for getting investments or loans

Any investor or lender requires information about your business's financials before they make a decision to invest in your business or lend you money. This means that they would want to have a look at your business’s accounting books.

Ideally, you must show investors and lenders your business’s financial statements. This helps them obtain information about your profitability.

Without organized accounting books, your profitability claims, financial statements, and financial forecasts won’t be accurate or have any backing.

Accounting online assessment test is designed and validated by industry experts to help recruiters and hiring managers to assess the Accounting skills of the candidate. Top companies are using our Accounting online skills test to reduce candidate screening time by 85%.

The Accounting test screens candidates for the following skills:

• The ability to analyze numbers and trends with the given data
• Deep understanding of Accounting Fundamentals
• The ability to clearly understand complex mathematical ideas
• Ability to strategize

The insights generated from this assessment can be used by recruiters and hiring managers to identify the best candidates for the role. Anti-cheating features enable you to be comfortable with conducting assessments online. The Accounting online assessment test is ideal for helping recruiters identify which candidates have the necessary accounting skills to do well on the job.

The Accounting Online assessment test is designed to test for basic accounting fundamentals and hands-on advanced accounting skills in using functions and more:

Basic Accounting Skills: These questions are designed to evaluate a candidate's knowledge and expertise of fundamental concepts in Accounting - like Understanding Accrual basis accounting, Cash basis accounting, Accounts payable, Accounts receivable, etc.

Advanced Accounting skills: These questions are designed to assess a candidate's accounting skills in topics like Joint Stack Companies, Bonus Share & Right Share, Debentures, Company Final Accounts, Ratio Analysis, Departmental Accounts, Branch Account, Consignment Account, etc.

Typical Financial Accountant responsibilities include:

• Helping in preparing the monthly profit and loss, and balance sheet reports by collecting data, summarizing data and information
• Timely response to financial queries by analyzing, summarizing, and interpreting data
• Creating KPI reports, quarterly and annual statements
• Conducting regular unbiased internal audits
• Keeping up to date with financial regulations and compliances

The Excel online test is designed to filter out candidates for job roles like:

• Accountant
• Financial Accountant
• Financial Analyst
• Financial Manager
• Management Accountant
• Staff Accountant

The actual score distributon will vary based on your candidate pipeline quality, but you should typically expect ~20% of the candidates to do well on Adaface assessments.

The score distribution for our assessments follow the normal curve. This is a good sign- standardized tests like SAT and GRE follow the normal distribution (bell curve).

Status quo assessments typically have the exact opposite of the bell curve (too many candidates getting close to 0, too many candidates getting close to 100 and too few candidates in the middle). This is typically because they focus on theoretical questions or trick questions, which are very binary in nature- either you know the trick/ theory or you don’t.