The financial accounting exam covers concepts and skills usually taught in an undergraduate first-year accounting course. The exam consists of about 75 multiple-choice questions to answer in 90 minutes. Some of them are pretest questions that will never be scored by the exam administrator. Others are multiple choice questions with a few more options for response.
The financial exam was developed by the National Council of Accreditation of Schools of Accountants (NCCA). In addition to being the highest level of education an accountancy student can earn, it is the primary credential required to pass the CPA exam. All other certifications (such as CMA) are based on a state level licensing exam.
The exam is divided into two parts. The first part, which is the written section, is administered online via the NCCA website. Questions are taken from the exam guide. Passing is determined by answering all of the questions correctly.
The second part of the exam is administered in a real exam center and involves a real exam setting in front of a live examiner. To qualify for the exam, students must meet NCCA requirements such as having taken the CPA exam and having earned a bachelor’s degree in accountancy or its related subjects.
There are two types of exam: open book and closed book. The closed book exam is administered in a classroom setting and can be scheduled at the students’ convenience. The open book exam is administered in an auditorium and takes place during the exam center’s open hours.
When taking the exam, students should be prepared with the following information before beginning. These include a list of the main topics covered on the exam, study tips for preparing for the exam and sample exam questions. This information is also helpful when looking for answers to questions posed in the exam.
Upon successful completion of the exam, students will receive a certificate of completion. The exam does not require the student to take the certification test again. However, if a student wishes to repeat the certification exam, he or she should contact the exam administrator in writing.
There are many different types of exams in accounting. The three main categories are internal auditing (auditor-client), management auditing (manager-auditor) and external auditing (auditor-third-party). Other subjects that are often offered on the exam include: corporate finance, contract accounting, general ledger accounting, bookkeeping, payroll, business systems, financial statement analysis, income statement analysis and bookkeeping.
Most of the exams are administered in the U.S., but there are international exams available. The International Accounting Standards Board offers online exams. for countries such as China, Hong Kong, India, Singapore and Taiwan.
Students are advised to check with their local exam center for more information about exam requirements. and how they can prepare for the exam.
Students who have been in business for several years have more opportunities for success in the exam than fresher. The exam is designed for those who have been in the accounting field for over five years.
The exam is not too difficult but it is important to understand the information being presented on the exam and how to find the answer to the question, if any. It is essential to have good communication skills in order to maximize your chances of success.