Financial Accounting
Financial Accounting covers the first college accounting course: the accounting cycle, the income statement, the balance sheet and the statement of cash flows. It is a standard requirement for business degrees.
Start practice testAbout this exam
The exam tests whether you can record transactions correctly and read the statements those transactions produce. General concepts carry the largest share, followed by the three main statements.
Expect journal entries, adjusting entries, inventory and depreciation methods, and questions that give you figures and ask what a statement will show.
Accuracy matters more than speed here. Most lost points come from small errors in the direction of an entry.
Topic breakdown
Topic weights published by College Board.
How to study for this exam
- Drill debits and credits until the direction of an entry is automatic.
- Work the full accounting cycle end to end at least twice, including closing entries.
- Compare inventory and depreciation methods and know what each does to reported income.
- Practise reading a set of statements and answering questions about the relationships between them.
How the practice test works
- Choose all units or a single unit to focus on.
- Set the number of questions and a time limit, or practise untimed.
- Filter by difficulty to warm up or push yourself.
- Retake as many times as you like — every attempt is free.
- Your recent sessions stay on this device so you can review them.
Common questions
Do I need business experience?
No, but familiarity with how a business operates makes the scenarios easier to picture.
Is managerial accounting included?
No. This exam is financial accounting only, which is the reporting side rather than internal decision making.
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