Accounting Fundamentals Practice Exam

About Accounting Fundamentals
Accounting is the procedure of data entry and recording, summarising, analyzing, and then reporting. This data relates to financial transactions of businesses and corporations. Operations of a business entity over an accounting period, generally a year, are keys to prepare financial statements.

 A company uses accounts to measure where it stands in the economic sense. They help in decision making as well as cost planning and assessment. Above all, accounting reports are of utmost importance to outside entities as well- namely the investors, creditors, and regulatory bodies. Professionals across the world use a set of standards- “GAAP- Generally Accepted Accounting Principles” for preparing these reports.

Why is Accounting Fundamentals important?
Accounting plays a vital role in running a business because it helps you track income and expenditures, ensure statutory compliance, and provide investors, management, and government with quantitative financial information which can be used in making business decisions.

It is used for preparing the above three types of financial statements, namely Income and expenditure statement, Balance Sheet, and Statement of Cash flows. These statements are useful for ascertaining and reporting the financial information and standing of the entity periodically, usually a year.

Who should take the Accounting Fundamentals Exam?
•    Finance and Accounting professionals
•    Business owners
•    Finance and Accounting managers and senior executives
•    Anyone who wants to assess their accounting related skills
•    Entrepreneurs

Knowledge and Skills required for the Accounting Fundamentals

Critical thinking and good communication skills helps candidate to gain quick success for career in accounting fundamentals.

Accounting Fundamentals Practice Exam Objectives

Accounting Fundamentals exam focuses on assessing your skills and knowledge in accounting basics, trial balance and balance sheet.

Accounting Fundamentals Practice Exam Pre-requisite

There are no prerequisites for the Accounting Fundamentals exam.

Accounting Fundamentals Certification Course Outline

1. Basic Accounting Principles and Framework
1.1. Learning to Understand Accounting
1.2. Assumptions, Principles, and Conventions of Accounting
1.3. Global Standards for Accounting

2. The Accounting Equation and Financial Statements
2.1. The Accounting Equation
2.2. Double-entry, Debits, and Credits
2.3. Understanding Financial Statements

3. The Accounting Cycle and Accrual Accounting
3.1. The Accounting Cycle
3.2. Chart of Accounts
3.3. Cash and Accrual Accounting

4. Accounting Transactions and Books of Account
4.1. General Journals and Special Journals
4.2. General Ledgers and Subsidiary Ledgers
4.3. Posting Accounting Transactions

5. Trial Balance & Adjusting Entries
5.1. Trial Balances
5.2. Adjusting Entries
5.3. Making Adjusting Entries
5.4. Closing the Accounts

6. The Balance Sheet
6.1. Balance Sheet Components
6.2. Balance Sheet Preparation
6.3. Transactions Affecting the Balance Sheet
6.4. Balance Sheet Connections


Exam Format and Information
Certification name – Accounting Fundamentals Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199