{ "assessmentTests": { "financial_accounting": { "subscales": { "debits_credits": { "name": "Debits & Credits" }, "income_statement": { "name": "Income Statement" }, "balance_sheet": { "name": "Balance Sheet" }, "accrual_cash": { "name": "Accrual vs. Cash" }, "depreciation": { "name": "Depreciation" }, "working_capital": { "name": "Working Capital" } }, "name": "Financial Accounting Test", "desc": "28 scenario questions on debits and credits, the income statement, the balance sheet, accrual vs. cash accounting, depreciation, and working capital — assistant/junior-bookkeeper level.", "recommendation": "Your financial accounting profile", "questions": [ { "question": "Which entry increases an asset account such as Cash or Inventory?", "options": [ { "icon": "", "label": "A credit" }, { "icon": "", "label": "Neither — assets are never debited" }, { "icon": "", "label": "A debit" }, { "icon": "", "label": "It depends on the asset" } ] }, { "question": "In double-entry bookkeeping, every transaction must affect at least how many accounts?", "options": [ { "icon": "", "label": "Two" }, { "icon": "", "label": "One" }, { "icon": "", "label": "Three" }, { "icon": "", "label": "Four" } ] }, { "question": "Which entry increases a liability account such as Accounts Payable?", "options": [ { "icon": "", "label": "A debit" }, { "icon": "", "label": "Neither — liabilities are never credited directly" }, { "icon": "", "label": "A credit" }, { "icon": "", "label": "It depends on the liability" } ] }, { "question": "A company pays cash to settle a supplier's bill. What happens to the Cash account?", "options": [ { "icon": "", "label": "It is debited (increased)" }, { "icon": "", "label": "It is credited (decreased)" }, { "icon": "", "label": "It is debited (decreased)" }, { "icon": "", "label": "No journal entry is required" } ] }, { "question": "Which account type normally carries a credit balance?", "options": [ { "icon": "", "label": "Expenses" }, { "icon": "", "label": "Assets" }, { "icon": "", "label": "Dividends / Drawings" }, { "icon": "", "label": "Revenue" } ] }, { "question": "What is another common name for the income statement?", "options": [ { "icon": "", "label": "Profit and loss statement" }, { "icon": "", "label": "Statement of financial position" }, { "icon": "", "label": "Statement of cash flows" }, { "icon": "", "label": "Trial balance" } ] }, { "question": "Which of these line items appears on the income statement rather than the balance sheet?", "options": [ { "icon": "", "label": "Accounts payable" }, { "icon": "", "label": "Equipment" }, { "icon": "", "label": "Retained earnings" }, { "icon": "", "label": "Cost of goods sold" } ] }, { "question": "Gross profit is calculated as:", "options": [ { "icon": "", "label": "Revenue minus all operating expenses" }, { "icon": "", "label": "Revenue minus cost of goods sold" }, { "icon": "", "label": "Net income minus taxes" }, { "icon": "", "label": "Revenue plus cost of goods sold" } ] }, { "question": "Net income is best described as:", "options": [ { "icon": "", "label": "Total revenue collected in the period" }, { "icon": "", "label": "Cash collected from customers during the period" }, { "icon": "", "label": "Revenue minus all expenses, including interest and taxes" }, { "icon": "", "label": "Gross profit plus operating expenses" } ] }, { "question": "On a typical income statement, which line comes directly after \"Gross Profit\"?", "options": [ { "icon": "", "label": "Operating expenses" }, { "icon": "", "label": "Cost of goods sold" }, { "icon": "", "label": "Net income" }, { "icon": "", "label": "Sales revenue" } ] }, { "question": "The fundamental accounting equation is:", "options": [ { "icon": "", "label": "Assets = Revenue − Expenses" }, { "icon": "", "label": "Assets + Liabilities = Equity" }, { "icon": "", "label": "Assets = Liabilities + Equity" }, { "icon": "", "label": "Equity = Liabilities − Assets" } ] }, { "question": "Which of these is classified as a current asset?", "options": [ { "icon": "", "label": "Buildings" }, { "icon": "", "label": "Long-term investments" }, { "icon": "", "label": "Accounts receivable" }, { "icon": "", "label": "Goodwill" } ] }, { "question": "Which of these is classified as a current liability?", "options": [ { "icon": "", "label": "A mortgage due in 10 years" }, { "icon": "", "label": "Common stock" }, { "icon": "", "label": "Accounts payable" }, { "icon": "", "label": "Retained earnings" } ] }, { "question": "On the balance sheet, \"retained earnings\" represents:", "options": [ { "icon": "", "label": "Cash held in the company's bank accounts" }, { "icon": "", "label": "Accumulated profits not paid out as dividends" }, { "icon": "", "label": "Total sales recorded for the year" }, { "icon": "", "label": "Money currently owed to suppliers" } ] }, { "question": "Which financial statement shows a company's financial position at a single point in time?", "options": [ { "icon": "", "label": "The balance sheet" }, { "icon": "", "label": "The income statement" }, { "icon": "", "label": "The statement of cash flows" }, { "icon": "", "label": "The statement of retained earnings" } ] }, { "question": "Under accrual accounting, revenue is recorded when:", "options": [ { "icon": "", "label": "The good or service is delivered, regardless of when cash is received" }, { "icon": "", "label": "Cash is received from the customer" }, { "icon": "", "label": "The invoice is printed and mailed" }, { "icon": "", "label": "The customer first places the order" } ] }, { "question": "A company receives a December utility bill for service used in December but pays it in January. Under accrual accounting, in which month is the expense recorded?", "options": [ { "icon": "", "label": "December, when the expense was incurred" }, { "icon": "", "label": "January, when it was paid" }, { "icon": "", "label": "Split evenly between December and January" }, { "icon": "", "label": "It is not recorded until the next bill arrives" } ] }, { "question": "Which accounting method recognizes revenue and expenses only when cash actually changes hands?", "options": [ { "icon": "", "label": "Accrual basis" }, { "icon": "", "label": "Cash basis" }, { "icon": "", "label": "Hybrid basis" }, { "icon": "", "label": "Matching basis" } ] }, { "question": "The matching principle requires that:", "options": [ { "icon": "", "label": "Expenses be recorded in the same period as the revenue they helped generate" }, { "icon": "", "label": "Cash inflows always equal cash outflows" }, { "icon": "", "label": "Total assets always equal total liabilities" }, { "icon": "", "label": "All expenses be paid before any revenue is recognized" } ] }, { "question": "Depreciation is best described as:", "options": [ { "icon": "", "label": "The cash spent to repair or maintain an asset" }, { "icon": "", "label": "The decline in an asset's resale market value" }, { "icon": "", "label": "A liability owed to the tax authority" }, { "icon": "", "label": "The allocation of an asset's cost over its useful life" } ] }, { "question": "Which depreciation method spreads an equal amount of expense over each year of an asset's useful life?", "options": [ { "icon": "", "label": "Double-declining balance" }, { "icon": "", "label": "Straight-line" }, { "icon": "", "label": "Units-of-production" }, { "icon": "", "label": "Sum-of-the-years'-digits" } ] }, { "question": "A delivery van costs $30,000, has a useful life of 5 years, and no salvage value. Using straight-line depreciation, what is the annual depreciation expense?", "options": [ { "icon": "", "label": "$3,000" }, { "icon": "", "label": "$5,000" }, { "icon": "", "label": "$30,000" }, { "icon": "", "label": "$6,000" } ] }, { "question": "Accumulated depreciation is reported on the balance sheet as:", "options": [ { "icon": "", "label": "A liability owed to a lender" }, { "icon": "", "label": "An expense on the income statement" }, { "icon": "", "label": "A contra-asset that reduces the related fixed asset" }, { "icon": "", "label": "Part of shareholders' equity" } ] }, { "question": "Working capital is calculated as:", "options": [ { "icon": "", "label": "Total assets minus total liabilities" }, { "icon": "", "label": "Revenue minus expenses" }, { "icon": "", "label": "Cash minus accounts payable" }, { "icon": "", "label": "Current assets minus current liabilities" } ] }, { "question": "A company has current assets of $80,000 and current liabilities of $50,000. What is its working capital?", "options": [ { "icon": "", "label": "$130,000" }, { "icon": "", "label": "$50,000" }, { "icon": "", "label": "$80,000" }, { "icon": "", "label": "$30,000" } ] }, { "question": "Which of these transactions would DECREASE working capital?", "options": [ { "icon": "", "label": "Selling inventory for cash at cost, with no profit" }, { "icon": "", "label": "Purchasing equipment, a long-term asset, for cash" }, { "icon": "", "label": "Collecting an outstanding accounts receivable in cash" }, { "icon": "", "label": "Issuing common stock for cash" } ] }, { "question": "A high current ratio (current assets ÷ current liabilities) generally indicates that a company:", "options": [ { "icon": "", "label": "Cannot pay its short-term obligations" }, { "icon": "", "label": "Has enough short-term assets to cover its short-term liabilities" }, { "icon": "", "label": "Is highly profitable" }, { "icon": "", "label": "Carries too much long-term debt" } ] }, { "question": "Which of these is NOT typically included in current assets?", "options": [ { "icon": "", "label": "Cash" }, { "icon": "", "label": "Inventory" }, { "icon": "", "label": "Accounts receivable" }, { "icon": "", "label": "Equipment" } ] } ], "results": { "beginner": { "name": "Building the Foundations", "desc": "You're still forming the core mental model — which side of an entry a debit sits on, why the balance sheet has to balance, what makes accrual different from cash. That's normal starting ground, and every one of the misses clusters around a small set of rules rather than being scattered, which means the fix is narrow and fast: nail debits/credits and the accounting equation first, everything else in bookkeeping builds on those two.", "recommendation": "Start with the accounting equation (Assets = Liabilities + Equity) and the rule that debits increase assets/expenses while credits increase liabilities/equity/revenue. AccountingCoach's free lessons and a basic bookkeeping workbook will get the fundamentals to stick within a week or two of daily practice." }, "intermediate": { "name": "Comfortable with the Basics", "desc": "You handle routine entries and can read a simple income statement or balance sheet without getting lost. Where it gets shakier is the pairs that trip up most junior bookkeepers: accrual vs. cash timing, and translating a transaction into its effect on working capital rather than just recalling a formula.", "recommendation": "Work through 10-15 accrual-vs-cash timing scenarios and a handful of \"does this transaction raise or lower working capital\" questions. Once those stop requiring a second thought, you're operating at a solid junior-bookkeeper standard." }, "advanced": { "name": "Solid Junior Bookkeeper Level", "desc": "You reliably get debits/credits, the two core statements, accrual timing, and depreciation right, which is what most bookkeeping and accounts-assistant roles actually test for at interview. The remaining gap is usually in the edge cases: which specific transactions move working capital and which just shuffle it between current accounts.", "recommendation": "Practice reconciling a full month of transactions end to end — journal entries through to a trial balance — rather than isolated questions. That's the skill interviewers actually probe for beyond this level." }, "expert": { "name": "Ready for the Ledger", "desc": "You scored at the top across every area: debits and credits, both core statements, accrual accounting, depreciation, and working capital. That's a genuinely strong assistant/junior-bookkeeper foundation — you're not being tripped up by timing rules or contra-accounts, and you can trace a transaction through to its effect on the balance sheet without hesitating.", "recommendation": "The next real step up is exposure to a live ledger and month-end close, not more quiz questions. If you're job-hunting, lead with a walkthrough of a reconciliation or close you've done rather than reciting definitions." } }, "retakePrompt": { "lastResult": "Last time you scored as {result}.", "evolvedHint": "Bookkeeping fundamentals are highly trainable — see if your score moved.", "retakeButton": "Retake Financial Accounting" }, "optionOrderVersion": "b8c590eaa6507464" } }, "testNames": { "financial-accounting": "Financial Accounting Test" } }