Free practice test

Accountant Practice Test

Check what you know about the accountant job with 15 free questions and instant explanations.

Updated By the Career Education Institute Curriculum Team
About this practice test

15 multiple-choice questions on accountant knowledge, safety and vocabulary. Submit to see your score and explanations, or open any question’s answer as you go. Nothing is saved or shared.

Question 1 of 15Which organization sets U.S. GAAP?
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Answer: FASB. The Financial Accounting Standards Board sets GAAP.

Question 2 of 15Straight-line depreciation per year for an asset costing 20,000 dollars, with 2,000 dollars of salvage value and a 6-year life, is:
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Answer: 3,000 dollars. (20,000 − 2,000) ÷ 6 = 3,000 dollars per year.

Question 3 of 15Deferred revenue is:
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Answer: Cash received before revenue is earned. It’s a liability until earned.

Question 4 of 15An Enrolled Agent is authorized by:
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Answer: The IRS. EAs are federally authorized by the IRS.

Question 5 of 15Materiality refers to:
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Answer: Whether a misstatement could influence decisions. Material items matter to users.

Question 6 of 15Which term matches this definition: “An expense incurred but not yet paid.”
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Answer: Accrued expense. Accrued expense: An expense incurred but not yet paid.

Question 7 of 15What does “Materiality” mean?
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Answer: Whether a misstatement is significant enough to influence decisions.. Materiality: Whether a misstatement is significant enough to influence decisions.

Question 8 of 15Which term matches this definition: “The estimated income tax expense on financial statements.”
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Answer: Tax provision. Tax provision: The estimated income tax expense on financial statements.

Question 9 of 15What does “Depreciation” mean?
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Answer: Allocating the cost of an asset over its useful life.. Depreciation: Allocating the cost of an asset over its useful life.

Question 10 of 15Which term matches this definition: “Financial Accounting Standards Board, which sets GAAP.”
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Answer: FASB. FASB: Financial Accounting Standards Board, which sets GAAP.

Question 11 of 15What does “Internal controls” mean?
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Answer: Processes that safeguard assets and ensure accurate records.. Internal controls: Processes that safeguard assets and ensure accurate records.

Question 12 of 15Which term matches this definition: “An independent examination of financial statements or controls.”
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Answer: Audit. Audit: An independent examination of financial statements or controls.

Question 13 of 15What does “GAAP” mean?
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Answer: Generally Accepted Accounting Principles: U.S. accounting standards.. GAAP: Generally Accepted Accounting Principles: U.S. accounting standards.

Question 14 of 15Which term matches this definition: “The balance sheet, income statement, cash flow statement and statement of equity.”
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Answer: Financial statements. Financial statements: The balance sheet, income statement, cash flow statement and statement of equity.

Question 15 of 15What does “Reconciliation” mean?
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Answer: Comparing balances to supporting records to confirm accuracy.. Reconciliation: Comparing balances to supporting records to confirm accuracy.

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