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How to Evaluate a Bookkeeper Before You Hire
A simple 50-minute test may save you a lot of grief (and money). You run a business, not
an accounting firm. So how can you possibly know if a bookkeeper is competent before
you hand over your precious books? Actually, even accounting firms with experienced
CPAs have trouble sizing up a bookkeeper from a resume and an interview. So they do
what you do: Hire someone and keep their fingers crossed. To the rescue comes The
American Institute of Professional Bookkeepers (AIPB), with a free bookkeeper's hiring
test. The 39,ooo-member bookkeepers' association has designed a brief test for
employers about to hire a bookkeeper. "The hiring test is based on the national Certified
Bookkeeper examination," says AIPB Co-President Stephen Sahlein, "The applicant
answers 25 questions on basic journal entries, adjusting entries, bank reconciliations,
correction of accounting errors payroll, depreciation, merchandise inventory and other
key skills. It's much less demanding than the Certified Bookkeeper exam, which involves
three examinations at Prometric (Sylvan) test centers, but it does the job," Sahlein says.
"A bookkeeper who does well on hiring test at least has demonstrated key skills." No
applicant can see the test ahead of time because each test and optional added sections is
randomly drawn from a databank of over 250 questions. "Prospective bookkeepers who
pass this hiring test have basic skills, even if they are not certified," Sahlein stresses.
"You still need to interview applicants and check references to make sure someone is a
good fit for your business, but at least you can sleep at night knowing no unpleasant
surprises await you in the months ahead."
About the Bookkeeper's Hiring Test
This test is designed for bookkeepers responsible for all books in a company on the
accrual (not cash) basis. Questions are designed for applicants to do in their head-no
calculator is needed. Ignore answers to questions on skills your bookkeeper will not
need.
Recommendations:
Set a 50-minute time limit on the test.
2. Require a grade of 70 or better (18 or more correct answers out of 25)
3. Ignore questions on skills not required. For example, if your bookkeeper will not do
the bank reconciliation, ignore the questions on this subject.
1.
The employer assumes full responsibility for utilizing the attached
Bookkeeper's Hiring Test in its hiring process, for complying with
applicable employment laws and for ultimately hiring the most
qualified person for the job.
American Institute of
Professional Bookkeepers
(AIPB)
Bookkeeper's Hiring Test
Basic Test
Payroll Option
Depreciation Option
Inventory-Periodic Option
Test Name: AlPS Hiring Test
Test Form: 3
Test Points: 25.00
Name:
Date:
Bookkeeper's Hiring Test
---------------------------------
Form: 3
[1 ]BASIC BANKO 1 - BAT 006
Which of the following is not an asset account?
A. Prepaid Rent
B. Unearned Revenue
C. Office Supplies Inventory
D. Accounts Receivable
[2]BASIC BANK02 - BAT 005
Which of the following is a balance sheet account?
A. Notes Payable
B. Insurance Expense
C. Interest Income
D. Cost Of Goods Sold
[3]BASIC BANK03 - OE 011
On July 11, your firm, which is on the accrual basis, incurs $600 for repairs. On July 29, your
firm pays $400 for the repairs and on August 15, the $200 balance. How do you record the $200
payment?
A. Cash
200
Accounts
Receivable
200
B. Accounts Payable
200
Cash
200
C. Repairs Expense
200
Cash
200
D. Repairs Expense
600
Accounts Payable
400
Cash
200
[4]BASIC BANK04 - ABB 005
If CraCo's bank statement balance is $64,800, and adjustments in the bank reconciliation are as
shown below, what is the reconciled bank balance?
* Bank service charges amounted to $50
* The bank collected and credited to CraCo's
* Checks outstanding amounted to $7,200
account an $8,000 note payable plus $240 interest
* When CraCo deposited $750, the bank mistakenly credited CraCo's account for $570
A. $57,780
B. $72,750
C. $71,820
D. None of the above
1
This test was designed
by the American Institute of Professional Bookkeepers, the national association and certifying
organization for bookkeepers. For information; visit www.aipb.org or call 800-622-0121
© 2005 American Institute of Professional Bookkeepers All rights reserved.
Bookkeeper's Hiring Test
[5]BASIC BANK05 - ABB 005
BraCo's balance per books is $50,000, and adjustments for the bank reconciliation are as
follows:
* Bank
service charges amounted to $50
bank credited to BraCo's account collection of an $8,000 note payable plus $240 interest
Checks outstanding amounted to $7,200
BraCo's $750 deposit was mistakenly credited to its bank account for $570
* The
*
*
What was the reconciled balance as a result of the bank reconciliation?
A. $42,980
B. $41,810
C. $58,190
D. None of the above
[6]BASIC BANK06 - AR 005
On December 1, your calendar year firm, which is on the accrual basis, accepts a 60-day, $2,400
note with annual interest of 10% due at maturity. On December 31 your firm will:
A. Debit Interest Receivable for $420
B. Credit Interest Revenue for $240
C. Debit Interest Receivable for $40
D. Credit Interest Revenue for $20
[7]BASIC BANK07 - AE 005
Your calendar year company, which is on the accrual basis, pays sales reps a 5% commission on
sales. If, as of December 31, your sales for the year are $1 million, and you have paid $23,000 in
commissions, you will:
A. Debit Commission Expense for $50,000
B. Debit Commission Expense for $23,000
C. Credit Commissions Payable for $5,000
D. Credit Commissions Payable for $27,000
2
This test was designed by the American Institute of Professional Bookkeepers, the national association and certifying
organization for bookkeepers. For tnformatton; visit www.aipb.org or call 800-622-0121
© 2005 American Institute of Professional Bookkeepers All rights reserved.
Bookkeeper's Hiring Test
[8]BASIC BANK08 - RCIA 005
Your firm, which is on the accrual basis, receives a 20% commission on sales. WyCo signs up
and pays you an advance of $7,000, which you credit to Unearned Revenue. If, at year end, your
firm has achieved $25,000 in sales, what adjusting entry will you record?
A. Unearned Revenue
5,000
Revenue
5,000
B. Revenue
5,000
Unearned
Revenue
5,000
C. Cash
5,000
Revenue
5,000
D. Unearned Revenue
2,000
Revenue
2,000
[9]BASIC BANK09 - PE 005
Your firm, which is on the accrual basis, begins business this year and buys $30,000 of office
supplies, debiting Supplies Expense. If, at year end, $9,000 of supplies are on hand, what
adjusting entry do you record?
A. Office Supplies On Hand
21,000
Office Supplies Expense
21,000
B. Office Supplies On Hand
9,000
Office Supplies Expense
9,000
C. Office Supplies Expense
9,000
Office Supplies On Hand
9,000
D. Office Supplies Expense
9,000
Cash
9,000
[1O]BASIC
BANK! 0 - COAE 005
On November 22, your calendar year firm receives a $2,400 cash advance for services to be
performed in future, which is recorded as follows:
Cash
2,400
Revenue
2,400
If your firm performs the services on December 11 of the same year, what correcting entry, if
any, should you make?
A. Revenue
2,400
Unearned
Revenue
2,400
B. Unearned Revenue
2,400
Revenue
2,400
C. Accounts Receivable
2,400
Unearned
Revenue
2,400
D. No entry is needed
3
This test was designed by the American Institute of Professional Bookkeepers, the national association and certifying
organization for bookkeepers. For information, visit www.aipb.orgorca1l800-622-0121
© 2005 American Institute of Professional Bookkeepers All rights reserved.
Bookkeeper's Hiring Test
[11 ]PA YROLL BANK 11 - PHE 008
If an employee paid $10 an hour for a 35-hour workweek works 35 hours Monday-Friday and 6
hours on Sunday, how much premium pay is the employee due for overtime under federal law?
A. $60
B. $30
C. $5
D. No overtime pay
[12]PAYROLL
BANK12 - FFF 008
On November 23, your firm hires Joe, who had his full share of Social Security tax withheld on
his prior job. For the remainder of 200X, your firm must:
A. Withhold Medicare tax, but not Social Security tax
B. Withhold Medicare, but not Social Security tax
C. Withhold both Medicare and Social Security tax
D. Withhold and match Medicare tax and withhold but need not match Social Security tax
[13]PA YROLL BANK13 - WW 008
If a departing employee requests a copy of his/her Form W-2, the employer must provide it:
A. By January 15 of the year following the year of termination or within 30 days of the
departing employee's request
B. within 30 days of the date oftermination
C. By January 31 of the year following the year of termination or within 30 days of the
departing employee's request
D. within 60 days of the departing employee's
[14]PAYROLLBANK14
- ICE 008
When your firm's sales department persuades Alice, who has a full-time job at another firm, to
work for your company 8 hours each Saturday and 4 hours each Sunday, you:
A. Must pay the Alice as an independent contractor
B. Must pay the Alice as an employee withholding all appropriate taxes and providing a W-2
C. Can choose between a and b depending on your company's policy
D. Must pay Alice as an employee withholding all taxes but Social Security and Medicare taxes
4
This test was designed by the American Institute of Professional Bookkeepers, the national association and certifying
organization for bookkeepers. For information, visit www.aipb.org or call 800-622-0121
© 2005 American Institute of Professional Bookkeepers All rights reserved.
Bookkeeper's Hiring Test
[15]PAYROLL
BANKIS - PJE 005
As the bookkeeper for a calendar year company on the accrual basis, how would you record the
payroll below for the week ended December 31, if wages will not be paid until January 8?
Gross salary
$40,000
Amounts withheld:
Social Security tax
Medicare tax
Federal income tax
State income tax
Net
$2,480
580
9,000
3,000 (15,069
$24,940
A. Salary Expense
40,000
FICA Tax Withheld
Federal Income Tax Withheld
State Income Tax Withheld
Cash
B. Salary Expense
40,000
FICA Tax Withheld
Federal Income Tax Withheld
State Income Tax Withheld
Salaries
Payable
C. Salary Expense
24,940
Salaries
Payable
D. FICA Tax Withheld
3,060
Federal Income Tax Withheld 9,000
State Income Tax Withheld 3,000
Salaries Payable
24,940
Cash
[16]DEPRECN
3,060
9,000
3,000
24,940
3,060
9,000
3,000
24,940
24,940
40,000
BANK16 - FDC 005
On January 1, 20X4, your calendar year company purchases a desk that costs $1,300 and has a
$300 salvage value. If annual depreciation is $100, what is the desk's book value after recording
depreciation for 20X7?
A. $900
B. $1,300
C. $600
D. $1,000
5
This test was designed by the American Institute of Professional Bookkeepers, the national association and certifying
organization for bookkeepers. For information, visit www.aipb.org or caUBOO-622-0121
© 2005 American Institute of Professional Bookkeepers All rights reserved.
Bookkeeper's Hiring Test
[17]DEPRECN
BANK17 - SLD 005
On December 1, 200X, your calendar year firm purchases a delivery van with the data shown
below. What is depreciation expense as of December 31, 200X under the straight-line method?
Cost $36,000
Salvage value
Useful life
A.
B.
C.
D.
$6,000
5 years
$600
$6,000
$5,000
$500
[18]DEPRECN
BANK18 - DDB 005
On January 1, 20X4, your calendar year company purchases a machine with a cost of $120,000,
a salvage value of $20,000 and a useful life of 5 years and depreciates it using the double
declining balance method. On December 31, 20X5, you will:
A. Debit Depreciation Expense for $20,000
B. Debit Depreciation Expense for $40,000
C. Debit Depreciation Expense for $28,800
D. Debit Depreciation Expense for $48,000
[19]DEPRECN
BANK 19 - MAC 008
On July 1, 20X6, your calendar year firm purchases for $10,000 a lathe with a 10-year life and a
$1,000 salvage value. If your firm does not take a Section 179, how much depreciation will it
claim for 20X7 (the following year) based on the partial MACRS table below?
Year
3-Year
1 33.33%
244.45%
3 14.81 %
4
7.41%
5
6
7
8
5-Year
20.00%
32.00%
19.20%
11.52%
11.52%
5.76%
7-Year
14.29%
24.49%
17.49%
12.49%
8.93%
8.92%
8.93%
4.46%
A. $3,200
B. $2,880
C. $2,449
D. $4,445
6
This test was designed by the American Institute of Professional Bookkeepers, the national association and certifying
organization for bookkeepers. For information, visit www.aipb.org or caUBOO-622-0121
© 2005 American Institute of Professional Bookkeepers All rights reserved.
Bookkeeper's Hiring Test
[20]DEPRECN
BANK20 - 179 005
A Section 179 deduction:
A. Is virtually never taken for a passenger auto
B. Is taken for a passenger auto as readily as for other qualifying assets
C. Is not permitted for a passenger auto
D. Is virtually never taken for a passenger auto or any other vehicle
[21 ]INVPERI BANK21 - RPP 003
Based on the data below for a company using the periodic method, what should you do?
July 16
August 11
August 17
A.
B.
C.
D.
Debit
Debit
Debit
Debit
[22]INVPERI
Your company orders inventory with an invoice cost of $850 plus $60 freight
Inventory arrives at your company
You remit $910
Purchases for $910 on July 16
Merchandise Inventory for $910 on July 16
Purchases for $910 on August 11
Purchases for $910 on August 17
BANK22 - RPD 003
If your company, which uses the periodic method, purchases inventory for $10,000 at 2110 net
30, records the purchase as shown below, and pays after the discount period, what should you
do?
Purchases
9,800
Accounts Payable
A.
B.
C.
D.
9,800
Debit Accounts Payable for $10,000
Debit Purchase Discounts Lost for $200
Credit Purchase Discounts Lost for $200
Credit Merchandise Inventory for $200
[23]INVPERI
BANK23 - PRP 002
Under the periodic method, if your company returns an item for a credit, you:
A. Credit Purchase Returns And Allowances
B. Credit Accounts Payable
C. Debit Purchase Returns And Allowances
D. Credit Merchandise Inventory
7
This test was designed by the American Institute of Professional Bookkeepers, the national association and certifying
organization for bookkeepers. For information, visit www.aipb.org or call 800-622-0121
© 2005 American Institute of Professional Bookkeepers All rights reserved.
Bookkeeper's Hiring Test
[24 ]INVPERI BANK24 - RSP 002
How do you record under the periodic method a $9,000 sale on account of inventory that cost
$5,000?
A. Accounts Receivable
9,000
Cost Of Goods Sold
5,000
Merchandise Inventory
5,000
Sales
9,000
B. Accounts Receivable
9,000
Cos
t Of Goods Sold
5,000
Merchandise
Inventory
4,000
C. Accounts Receivable
Merchandise
Merchandise
D. Accounts
Sales
[25]INVENT
9,000
Inventory
Inventory
5,000
4,000
Receivable 9,000
9,000
BANK29 - COG 001
Given the following data, what is cost of goods sold for the year?
Beginning inventory
Purchases during year
Freight cost
Ending inventory
A.
B.
C.
D.
$ 40,000
$900,000
$ 20,000
$ 50,000
$900,000
$910,000
$890,000
$930,000
You have completed the test!
8
This test was designed by the American Institute of Professional Bookkeepers, the national association and certifying
organization for bookkeepers. For information, visit www.aipb.org or call 800-622-0121
© 2005 American Institute of Professional Bookkeepers All rights reserved.
ANSWER KEY REPORT
for AIPB Hiring Test Test Form: 3
Answers
#
ID
1
BASIC BANKO} - BAT 6
2
3
4
BASIC
BASIC
BASIC
BASIC
BASIC
BASIC
5
6
7
Points
BANK02
BANK03
BANK04
BANK05
BANK06
BANK07
- BAT 5
- OE 11
- ABB 5
- ABB 5
- AR 5
- AE 5
0
1.00
1.00
1.00
1.00
1.00
1.00
1.00
B
A
B
A
C
D
D
8
BASIC BANK08 - RCIA 5
1.00
9
BASIC BANK09 - PE 5
1.00
A
B
10
1.00
D
11
BASIC BANK 10 - COAE 5
PAYROLL BANK 11 - PHE 8
12
13
14
15
16
17
18
PAYROLL
PAYROLL
PAYROLL
PAYROLL
DEPRECN
DEPRECN
DEPRECN
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
C
C
C
B
B
A
B
C
19
DEPRECN BANK19 - MAC 8
20
21
22
23
24
25
DEPRECN BANKlO - 179 5
INVPERI BANKll - RPP 3
INVPERI BANKl2 - RPD 3
INVPERI BANK23 - PRP 2
INVPERI BANK24 - RSP 2
INVENT BANK29 - COG 1
1.00
1.00
1.00
1.00
1.00
1.00
1.00
C
A
C
B
A
D
B
BANK12 - FFF 8
BANK 13 - WW 8
BANK 14 - ICE 8
BANK 15 - pm 5
BANK16 - FDC 5
BANK 17 - SLD 5
BANK18 - DDB 5