Free Kenexa Prove It Pre-employment Accounting Test
Below are free Kenexa accounting sample questions that are indicative of the kinds of questions you will meet when you do the real Kenexa Prove It accounting test, or any other accounting test. You can test your knowledge with the following questions, or start preparing for the test using our full practice pack allowing you to see where you can improve.
All questions in our free pre-employment accounting test come with answers and comprehensive explanations, and all accounting subjects are included: accounts payable/receivable, bookkeeping for accountants, and general accounting practice questions. Ready for a more comprehensive practice experience? Let our Kenexa exclusive practice pack help you do just that. Get accounting PrepPacks™ today and ensure your success.
Start preparing for the test using our full practice pack. In accounting, practice makes perfect. Let our Kenexa exclusive practice pack help you do just that.
1. Which of the following are deducted from the bank balance in a bank reconciliation?
The correct answer is (C).
Outstanding checks are checks issued by the company that has not been presented to the bank for clearing, and thus they do not appear in the bank statement on reconciliation date. Since the cash account was credited for the checks issued, the outstanding checks should be deducted from the bank balance to reconcile it with the book balance.
Bank charges were already deducted from the bank balance since these originated from the bank. Deposits in transit are future additions to the bank balance and have been recorded in the books. Therefore, they should either be deducted from the book balance or added to the bank balance to reconcile the bank balance with the book balance.
2. Which of the following is a Cost of Sales item?
The correct answer is (B).
Freight-in is the cost of bringing in inventory purchased from suppliers, and this cost forms part of the cost of the goods sold. Freight-out refers to the cost of transporting the goods to the customer, and such costs are considered selling expenses.
3. Accounts Payable is classified as a/an ___________ in the _____________.
The correct answer is (C).
Accounts payable is an obligation to pay the supplier of goods or services received in the near future. Hence, it is a current liability and liabilities are presented in the Balance Sheet.
Choice (A) is incorrect because accounts payable is not an expense.
Choice (B) is incorrect because it is not an asset.
Choice (D) is incorrect because it is not an expense and, therefore, not presented in the income statement.
4. Wear It Corporation, a U.S. company, purchased knitwear from Hong Kong for USD 200,000 with delivery terms FOB (free on board) shipping point. The goods were shipped on October 25 and arrived at Wear It Corporation’s warehouse on December 1. Freight cost was $5,600 and the cost of insurance on the goods while in transit was $1,400. When should Wear It Corporation recognize the goods as part of its inventory?
The correct answer is (B).
FOB shipping point is part of international commercial law specifying that title of goods is transferred from the seller to the buyer as soon as the goods are loaded to the carrier. This means that all obligations and risks while the goods are in transit are borne by the buyer. The seller will not be liable for any damage to the goods after the goods are loaded to the carrier.
5. Which of the following qualitative characteristics of accounting information requires the reporting of bad debts on the Income Statement?
The correct answer is (A).
Relevant accounting information can impact a decision by helping users to form predictions about the outcomes of past, present, and future events or to confirm or correct prior expectations. Recognizing a bad debt expense on the Income Statement and the corresponding decrease in Accounts Receivable balance on the Balance Sheet ensures that the Financial Statements contain all the information that is useful for decision-making by the users.
6. When a sale is made with the credit terms of “2/10, net 30," the "net 30" refers to the:
The correct answer is (B).
“2/10, net 30” represents a credit term in which:
“2” refers to the discount percentage offered by the seller.
“10” refers to the number of days (from the invoice date) within which the buyer must pay the invoice to receive the discount.
“Net 30” indicates that if a buyer does not pay the full invoice amount within the 10 days to qualify for a discount, then the net amount is due within 30 days after the sales invoice date.
Let’s take a brief look at the various topics covered in the pre-employment test and accounting test for job applicants, so you can begin preparing.
Journal Entry – Used to record business transactions, journal entry has a number of guidelines, including; the account name - number, debit, and credit. If you are recording a credit make sure to indent the sum. In some cases, a brief description of the entry in the footer is needed.
Cash Flow – Also known as a statement of cash flows, this statement breaks down the financial accounting by financing activities, operations, investments, and concludes with the net amount.
Dividends – Approved by the board of directors, dividend payments are approved as a method of returning cash to shareholders.
Account Balancing – This can either refer to the current sum in a savings or checking account or alternatively a balance owed to a range of third parties like mortgage banker, utility company, or creditor.
Documentation – These could refer to cash memos, pay slips, cheques, debit notes, receipts, vouchers, or any other document used by the organization.
Financial Statement Analysis – This is where you will delve into the company’s financial statements to better understand what is useful to shareholders, managers, investors and to uncover the overall health of the company.
Inventory – Here we are talking about the value of inventory and it is important for it to be properly counted. It is thus important to learn Generally Accepted Accounting Principles.
Account Types – Here you may be asked on a wide range of accounting types, including Income and expense accounts, Undeposited Funds, credit cards and any method that can be used in real liquid currency.
Accounting Ratios – Based upon the company’s financial reports, accounting ratios represents the relationship between a whole host of data points.
Credit Terms – This is a calculation whereby discounts are provided if certain payment dates are met.
Provisions – Essentially a provision is when a company puts aside a set amount of money for a rainy day to cover potential or probable future liabilities. They are stated on the balance sheet.
Fair Presentation – You will have to make sure that the financial statement is clean of any misrepresentation (even if technically true) and read true to the overall performance of the company.
JobTestPrep's PrepPacks™ include all the materials you need to do well on the accounts payable, on the accounts receivable and on the bookkeeping, you van also practice on the Prove It general accounting tests. Start practicing today.
