Accounting assessment

Assessment

What is it?

The accounting assessment evaluates a candidate’s knowledge of accounting principles, covering financial statements, bookkeeping, tax regulations, and auditing. Through 20 timed, progressively challenging questions, it gauges both foundational and advanced skills, serving as an early knockout criterion for roles in bookkeeping, auditing, or financial reporting.

How it works

The Accounting Assessment begins with simpler questions focused on basic accounting concepts and then progresses to more advanced topics. The goal is to assess the candidate's ability to handle both day-to-day accounting tasks and complex financial situations. In a 20-question format, this might look like:

  • Basic Level questions may ask candidates to define key accounting terms like debits and credits or to record a basic transaction in a general ledger.
  • Intermediate Level questions could focus on interpreting financial statements, calculating depreciation using different methods, or preparing an income statement.
  • Advanced Level questions might challenge candidates to reconcile accounts, analyze financial data for tax purposes, or perform audit procedures.

The test is timed, requiring candidates to complete the assessment efficiently, mirroring real-world accounting roles where accuracy and time management are crucial for success.

Results and Benefits

The results of the Accounting Assessment provide employers with a clear understanding of the candidate's proficiency in core accounting tasks. Candidates who perform well demonstrate the ability to handle everything from basic bookkeeping to advanced financial analysis and audits. This ensures that only candidates with the necessary skills move forward, saving time and improving the quality of hires.

When to use it

The Accounting Assessment is best used early in the recruitment process to screen candidates for roles such as bookkeepers, auditors, or financial accountants. By using this test as a knockout criterion, employers can ensure that only candidates with the required accounting expertise move forward.This assessment is particularly effective for evaluating candidates in industries like finance, real estate, and corporate accounting, where attention to detail and precision are essential.

Example

Basic Level:
What is the primary difference between debits and credits?
a) Debits are used for income; credits are for expenses
b) Debits increase assets; credits increase liabilities
c) Debits increase liabilities; credits increase assets
d) They are interchangeable

How do you record a cash transaction in the general ledger?
a) Debit Cash, Credit Revenue
b) Credit Cash, Debit Revenue
c) Debit Revenue, Credit Accounts Payable
d) Debit Accounts Payable, Credit Cash

Intermediate Level:
What is the formula for calculating straight-line depreciation?
a) (Cost - Residual Value) / Useful Life
b) Cost × Residual Value × Useful Life
c) (Cost + Residual Value) / Useful Life
d) None of the above

Which item belongs on an income statement?
a) Total revenue
b) Depreciation expense
c) Net income
d) All of the above

Advanced Level:
What is the purpose of account reconciliation?
a) To find and resolve discrepancies
b) To prepare financial statements
c) To adjust tax liabilities
d) None of the above