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Accounting Compliance

The accounting compliance test provides insight into a job candidate’s ability to understand information and financial data found in statements, ledgers, and expense reports. Presented with a series of multiple-choice questions, job candidates are asked to read and evaluate information in order to choose the correct answer. In addition to assessing a job candidate’s potential to succeed in an accounting role, the compliance test measures their ability to:

  • Assess and interpret financial information found on statements, records, and ledgers.
  • Understand accrual and cash basis accounting methods.
  • Correctly document financial data, such as net income, dividends, and assets.
  • Maintain balance sheets and statements.

element-grad-cap   ABILITIES EVALUATED

  • Ability to prepare accurate and complete financial postings, records, and statements through the application of federal and related policies, procedures, and regulations.

element-grad-cap   QUESTION FORMAT

  • Multiple Choice

element-grad-cap   LANGUAGE

  • English

element-grad-cap   DIFFICULTY

  • Easy

WHY TEST?

Placing importance on accurately recording and tracking critical financial data can help any business vastly improve its overall outlook. Employing a detail-oriented accounting professional can streamline financial efficiencies, ensure legal compliance, and maximize profits by properly overseeing budgets, quickly identifying financial risk or unusual patterns, and reducing unnecessary expenses.

An employee skilled at successfully completing accounting tasks – such as processing payroll, correctly recording data on balance sheets, and developing financial projections – is a valuable asset. The compliance test is a fast, straightforward way to evaluate a job candidate’s accounting knowledge and their ability to maintain financial integrity.

The accounting compliance test predicts a job candidate’s ability to:

  • Identify fixed assets that will not increase accumulated depreciation in the upcoming calendar year.
  • Appropriately record company purchases, including shipping and tax costs, into balance sheets.
  • Understand how net income and dividends affect retained earnings on balance sheets.
  • Quickly recognize miscategorized activities on cash flow statements.
  • Maintain record consistency and accuracy by recording income and payments to the correct month.

Use this test to quickly and easily automate the screening process for entry-level or experienced candidates, including accountants, accounting technicians, bookkeepers, budget managers, financial analysts, or any other applicable position that oversees or manages financial data and records.

EXAMPLE QUESTIONS

Sample Question 1

Which account has a debit as a normal account balance?

Prepaid Expenses $42,000
Owner Equity $50,000
Long-Term Liabilities $18,000
Consulting Revenue $9,000
Gains $15,000

A: Prepaid Expenses
B: Owner Equity
C: Long-Term Liabilities
D: Consulting Revenue
E: Gains

Sample Question 2

Vincent purchases fixed assets in 2015. What fixed assets could he have purchased that would not have increased accumulated depreciation in 2016?

A: Land
B: Office Buildings
C: Machinery
D: Vehicles
E: Computer Software

RELATED JOBS

  • Business Operations & Management
  • Finance
  • Accounting

ABOUT THE AUTHOR

The Compliance Test: Accounting content was developed by the Indeed Assessment Science Team, with expertise in Industrial/Organizational Psychology, Instructional Design, Education, and Graphic Design. In addition, team members worked in collaboration with subject matter experts (SMEs). Indeed’s SMEs are required to demonstrate experience performing at a high level, supervisory experience, or responsibility for defining requirements for those jobs that require basic accounting skills.