Accountant skills test for hiring (questions, scoring rubric, red flags)

What to screen for when hiring an accountant

Hiring an accountant? Here's exactly what to test before you spend an hour interviewing anyone. A resume tells you where a candidate worked. It can't tell you whether they can post a clean adjusting entry, notice a reconciliation that quietly doesn't balance, or explain a variance to someone who doesn't speak GAAP. A short role-based skills test can. This page gives you the full screen: the competencies worth testing, 10 scenario questions with answers, a scoring rubric with cut scores, and the red flags that should slow a hire down.

It covers the accounting roles a small business actually hires: staff accountant, GL accountant, AP/AR specialist, and senior accountant. If you're building the whole hiring process and not just the test, start with the guide to hiring an accountant.

The 10 competency domains worth testing

• Accounting fundamentals: debits/credits, accounting equation, normal balances, accrual vs. cash
• Journal entries and adjusting entries: prepaids, accruals, deferrals, depreciation, corrections
• Financial statements and linkages: balance sheet vs. income statement impacts, retained earnings, cash flow classification
• Trial balance and error detection: posting errors, out-of-balance logic, reasonableness checks
• Working capital (AR/AP): allowances, aging, accrual cutoffs, reconciliations
• Inventory and COGS: FIFO/LIFO/weighted average concepts and financial statement impact
• Fixed assets: capitalization policy, depreciation, disposals
• Month-end close workflow: reconciliations, tie-outs, documentation, controls mindset
• Basic analysis: variance explanation, key ratios (current ratio, gross margin, DSO)
• Excel/data readiness (optional but recommended): SUMIFS, XLOOKUP, pivots, data cleanup logic

Why these domains? They reflect what your accountant will do during the close, and they're the things you need evidence on before you hire: accuracy, judgment, a controls mindset, and the ability to explain results in plain language.

How to run the screen

Format

• 35 to 45 minutes, no feedback shown during the test
• Same questions, same time limit, and same instructions for every candidate
• Score against the rubric below, then compare domain scores across your candidate pool

Difficulty tiers

• Level 1 (entry/staff): core journal entry logic, statements, basic reconciliation
• Level 2 (senior/experienced): complex adjustments, error chains, multi-step impacts, controls and prioritization

Suggested modules by role

• Bookkeeper / AP / AR (30 to 35 min): fundamentals, working capital, close workflow
• Staff accountant / GL (40 to 45 min): all core domains plus adjusting entries
• Senior accountant (45 to 60 min): add harder error-detection, variance narratives, and controls case prompts

The test: 10 accountant questions with answers

Use these as the core of your screen. Each one mirrors a task your accountant will face during month-end, so a right answer is evidence of real close experience, not memorized definitions.

1) Debits/credits + normal balances (fundamentals)

Scenario: You record a vendor invoice for $4,800 for January utilities, to be paid next month.
Which entry is correct at invoice receipt?

A. Dr Utilities Expense 4,800; Cr Cash 4,800
B. Dr Utilities Expense 4,800; Cr Accounts Payable 4,800
C. Dr Prepaid Expense 4,800; Cr Accounts Payable 4,800
D. Dr Accounts Payable 4,800; Cr Utilities Expense 4,800

Correct answer: B

2) Accrual vs. cash (adjusting entries)

Scenario: Payroll of $18,000 is paid every Friday. The month ends on Wednesday. No accrual has been booked yet for the three days worked (Mon to Wed). Assume a 5-day workweek.
What is the month-end adjusting entry?

A. Dr Wages Expense 10,800; Cr Cash 10,800
B. Dr Wages Expense 10,800; Cr Wages Payable 10,800
C. Dr Wages Expense 18,000; Cr Wages Payable 18,000
D. Dr Wages Payable 10,800; Cr Wages Expense 10,800

Correct answer: B (18,000 ÷ 5 × 3 = 10,800)

3) Revenue recognition (cutoff)

Scenario: On 12/30, the company ships goods FOB shipping point. The customer receives them 1/2. Invoice is issued 12/30. The goods cost $9,000 and sell for $15,000.
Under typical U.S. GAAP reasoning for FOB shipping point, when should revenue be recognized?

A. 12/30
B. 1/2
C. When cash is received
D. When the customer acknowledges receipt

Correct answer: A

4) Financial statement linkage (statements)

Scenario: The candidate discovers $6,000 of expenses were incorrectly capitalized as equipment this month. No depreciation has been recorded yet.
What is the immediate impact of correcting it (same month)?

A. Net income increases; assets increase
B. Net income decreases; assets decrease
C. Net income decreases; liabilities increase
D. Net income increases; liabilities decrease

Correct answer: B

5) Trial balance error detection (close quality)

Scenario: The trial balance is out of balance by $2,500. A credit entry was posted as $1,250 instead of $2,500.
If this was the only error, what would be the out-of-balance amount?

A. $1,250
B. $2,500
C. $3,750
D. $5,000

Correct answer: A (credit understated by 1,250, leaving a 1,250 imbalance)

6) Allowance for doubtful accounts (AR)

Scenario: Ending AR is $200,000. An estimated 3% will be uncollectible. The allowance currently has a $1,500 credit balance.
What adjusting entry is needed?

A. Dr Bad Debt Expense 4,500; Cr Allowance 4,500
B. Dr Bad Debt Expense 6,000; Cr Allowance 6,000
C. Dr Bad Debt Expense 4,500; Cr Accounts Receivable 4,500
D. Dr Allowance 4,500; Cr Bad Debt Expense 4,500

Correct answer: A (required allowance = 6,000; current credit = 1,500; increase by 4,500)

7) Inventory and COGS impact (core technical)

Scenario: Prices are rising. Under FIFO vs. LIFO, which outcome is generally true?

A. FIFO produces higher COGS and lower gross profit than LIFO
B. FIFO produces lower ending inventory than LIFO
C. FIFO produces lower COGS and higher gross profit than LIFO
D. FIFO and LIFO produce the same gross profit when prices rise

Correct answer: C

8) Fixed assets and depreciation (adjustments)

Scenario: The company purchases equipment for $120,000 on 4/1. Useful life is 5 years, no salvage, straight-line. Year-end is 12/31.
What depreciation expense should be recorded for the year?

A. $24,000
B. $18,000
C. $20,000
D. $30,000

Correct answer: B (120,000 ÷ 5 = 24,000 per year; 9/12 of year = 18,000)

9) Bank reconciliation logic (work-sample thinking)

Scenario: Bank statement ending balance: $52,400. Book cash balance: $49,900.
Reconciling items:

• Outstanding checks: $6,700
• Deposits in transit: $8,200
• Bank service charge not recorded: $60

What should the candidate conclude?

A. Reconciled cash is $53,900
B. Reconciled cash is $49,840
C. There is a missing reconciling item; the reconciliation does not balance as presented
D. The service charge should be added to the book balance

Correct answer: C

Bank side: 52,400 − 6,700 + 8,200 = 53,900
Book side: 49,900 − 60 = 49,840
Because these don't match, a control-minded candidate flags the mismatch and looks for the missing reconciling item. A candidate who forces the numbers together is exactly the risk this question is built to surface.

10) Excel for accountants (tools readiness)

Scenario: The candidate needs to sum invoice amounts for Vendor = "ACME" and Month = January.
Which function is most appropriate?

A. SUM
B. SUMIF
C. SUMIFS
D. VLOOKUP

Correct answer: C

Scoring rubric and cut scores

Domain weights (default: staff accountant / GL)

Total score = 100 points.

• Fundamentals (10)
• Journal entries and adjusting entries (18)
• Financial statements and linkages (12)
• Trial balance and error detection (10)
• Working capital: AR/AP (12)
• Inventory and COGS (8)
• Fixed assets (8)
• Month-end close workflow and controls (12)
• Basic analysis (5)
• Excel/data (5)

How points are calculated

• Multiple-choice knowledge/application: 1 question = 2 to 4 points depending on difficulty
• Work-sample scenarios (recommended add-on): graded for:
  • Accuracy (70%): correct numbers and entries
  • Method (20%): clear steps, tie-outs, sound assumptions
  • Documentation (10%): a brief explanation suitable for a reviewer

Decision bands

Use these as practical bands for your hiring decision, not as a substitute for job-specific validation.

• 90 to 100: can own close tasks with minimal technical supervision
• 75 to 89: job-ready staff; executes core close tasks with normal review
• 60 to 74: developing; expect multi-step close work to need close support at first
• Below 60: foundation gaps; higher risk of posting and reconciliation errors without heavy oversight

Cut score starting points

• AP/AR specialist: 65 to 70
• Staff accountant / GL: 75
• Senior accountant: 85 plus a work-sample requirement

Professional note: in the U.S., treat cut scores as part of a broader, job-related selection process. Pilot with your own team when possible and monitor for consistency and potential adverse impact.

Red flags for hiring decisions

The total score matters less than how a candidate misses. Watch for these patterns:

• Forcing numbers to balance. On question 9, a candidate who "solves" the reconciliation by adjusting a figure instead of flagging the mismatch is showing you how they'll handle a real close under deadline pressure.
• Missing statement linkage. A candidate who can post entries but can't say what question 4's correction does to net income and assets has run software on autopilot, not owned a close.
• Software names without entry logic. QuickBooks and Xero fluency is teachable in a week to someone who understands the accounting underneath. The reverse isn't true.
• Weak error-detection domains despite a high overall score. Trial balance and reconciliation misses are the errors that cost you money later. Probe them in the interview even if the total clears your cutoff.

Benchmarks hiring teams use

• Close speed (staff level): completes a bank reconciliation with 6 to 10 reconciling items in 20 to 30 minutes with support
• Accuracy: fewer than 1 material logic error per close-area case (for example, a misclassification that flips balance sheet vs. P&L)
• Excel: builds a pivot plus a SUMIFS summary without step-by-step help

Compliance and fairness notes (U.S.)

If you use this accountant test for hiring:

• Keep the test job-related and aligned to role requirements
• Use standardized administration (same time limit, same instructions, same rubric)
• Retain score sheets and interviewer notes as selection records
• Offer reasonable accommodations when requested
• Monitor outcomes for consistency and potential adverse impact; adjust based on evidence

Run this screen automatically with Truffle

You can run this test by hand: email the questions, collect answers, score against the rubric. That works for five candidates. It breaks at fifty.

Truffle is a candidate screening platform that combines talent assessments with resume screening and one-way video interviews. Set up the accountant screen once: resume screening cuts the obvious mismatches, the assessment surfaces who can actually reason through close work, and a one-way interview shows you how each finalist explains numbers in plain language. AI scores every candidate against the criteria you set and shows the evidence behind every ranking. You make the call.

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