Candidates seeking bookkeeping credentials through the Institute of Accountants and Bookkeepers take these qualifications to build practical accounting skills. This page provides free practice questions, assessment specifications, and passing requirements for the IAB Level 1 Award in Bookkeeping, IAB Level 2 Certificate in Bookkeeping, and IAB Level 3 Certificate in Bookkeeping and Accounting. Explore practice sets below to evaluate your knowledge across accounting principles, payroll, compliance, and reporting.
Numbers in brackets link to the official sources listed under Sources & last verified. Dates that have passed are removed automatically.
| Item | Detail | Source · Verified |
|---|---|---|
| Time limit (IAB Level 1 Award in Bookkeeping (601/9065/6)) | 120 minutes (longest single assessment)[1] | Institute of Accountants and Bookkeepers · Oct 27, 2026 |
| Time limit (IAB Level 2 Certificate in Bookkeeping (601/9061/9)) | 120 minutes (longest single assessment)[1] | Institute of Accountants and Bookkeepers · Oct 27, 2026 |
| Time limit (IAB Level 3 Certificate in Bookkeeping and Accounting (601/9058/9)) | 180 minutes (longest single assessment)[1] | Institute of Accountants and Bookkeepers · Oct 27, 2026 |
| Passing score (IAB Level 1 Award in Bookkeeping (601/9065/6)) | 60% in each assessment[1] | Institute of Accountants and Bookkeepers · Oct 27, 2026 |
| Passing score (IAB Level 2 Certificate in Bookkeeping (601/9061/9)) | 70% in knowledge tests and assignments, 60% in the examination[1] | Institute of Accountants and Bookkeepers · Oct 27, 2026 |
| Passing score (IAB Level 3 Certificate in Bookkeeping and Accounting (601/9058/9)) | 70% in the knowledge test, 60% in assignments and examination[1] | Institute of Accountants and Bookkeepers · Oct 27, 2026 |
| Exam fee (UK Student Membership) | £125[2] | Institute of Accountants and Bookkeepers · Oct 27, 2026 |
| Delivery (IAB Level 1 Award in Bookkeeping (601/9065/6)) | E-assessment, graded Pass/Fail[3] | find-a-qualification.services.ofqual.gov.uk · Oct 27, 2026 |
| Delivery (IAB Level 2 Certificate in Bookkeeping (601/9061/9)) | E-assessment, graded Pass/Fail[4] | find-a-qualification.services.ofqual.gov.uk · Oct 27, 2026 |
| Delivery (IAB Level 3 Certificate in Bookkeeping and Accounting (601/9058/9)) | E-assessment, graded Pass/Fail[5] | find-a-qualification.services.ofqual.gov.uk · Oct 27, 2026 |
| Eligibility | No formal entry requirements[1] | Institute of Accountants and Bookkeepers · Oct 27, 2026 |
| Registration deadline (IAB Level 1 Award in Bookkeeping (601/9065/6)) | 1 March 2027[3] | find-a-qualification.services.ofqual.gov.uk · Oct 27, 2026 |
| Registration deadline (IAB Level 2 Certificate in Bookkeeping (601/9061/9)) | 1 March 2027[4] | find-a-qualification.services.ofqual.gov.uk · Oct 27, 2026 |
| Registration deadline (IAB Level 3 Certificate in Bookkeeping and Accounting (601/9058/9)) | 1 March 2027[5] | find-a-qualification.services.ofqual.gov.uk · Oct 27, 2026 |
According to Institute of Accountants and Bookkeepers, “At Level 1 you need at least 60% in each assessment.”[1]
The Institute of Accountants and Bookkeepers offers qualifications designed to certify competence in bookkeeping and financial recording. Candidates can pursue the IAB Level 1 Award in Bookkeeping (601/9065/6), the IAB Level 2 Certificate in Bookkeeping (601/9061/9), or the IAB Level 3 Certificate in Bookkeeping and Accounting (601/9058/9). None of the three qualifications has formal entry requirements, though basic numeracy and literacy are recommended for Level 1, and bookkeeping knowledge is desirable for Level 2. UK Student Membership costs £125.
All three qualifications are delivered through E-assessment and graded Pass/Fail. Each level establishes specific assessment thresholds:
The operational registration deadline across all three qualifications is 1 March 2027. Specific retake procedures, scheduling details, and testing window arrangements vary by accredited centre; check with the official Institute of Accountants and Bookkeepers for administrative details.
Prepare for the IAB - International Association of Bookkeepers Certification exam with our free practice test modules. Each quiz covers key topics to help you pass on your first try.
These are practice questions written for this site, not questions from the real exam. Each explanation shows why the right answer is right and why the others are wrong.
Question: Which federal form must employees complete to indicate their withholding allowances for federal income tax purposes?
Answer: B. Form W-4
Explanation:
Form W-4 is correct because employees complete this certificate so employers can calculate the accurate federal income tax withholding from each paycheck. Form W-2 is incorrect because it is an annual summary statement provided by employers showing total earnings and taxes withheld during the calendar period. Form 941 is incorrect because it is an employer quarterly federal tax return used to report wages paid and payroll taxes withheld, rather than an employee withholding certificate. Form 1099 is incorrect because it reports non-employee compensation, dividends, or miscellaneous income paid to independent contractors. The general rule to remember is that Form W-4 establishes withholding parameters at the start of employment, whereas Form W-2 and Form 1099 report historical payments, and Form 941 reports aggregate employer payroll totals.
Question: What does 'compliance' mean in business law?
Answer: B. Following all legal and regulatory requirements.
Explanation:
Following all legal and regulatory requirements is correct because compliance denotes adherence to mandatory statutes, government regulations, and relevant administrative rules governing business operations. Meeting ethical expectations of the industry is incorrect because ethical codes represent voluntary standards or professional ideals rather than enforceable statutory law. Achieving maximum profits is incorrect because financial gain represents an economic objective rather than a legal duty, and pursuit of profit must remain subordinate to lawful conduct. Adhering to internal company policies is incorrect because internal workplace rules, while important for operational discipline, do not fulfill external statutory mandates on their own. The general rule to remember is that compliance strictly concerns conformity with external legal and regulatory obligations.
Question: Why is the statement of cash flows important for investors?
Answer: B. It shows how the company manages its cash and investments.
Explanation:
Showing how the company manages its cash and investments is correct because the statement of cash flows details actual cash inflows and outflows across operating, investing, and financing activities. It shows whether a firm generates sufficient liquid funds to sustain obligations and reinvest. Showing profitability is incorrect because profitability is measured on the income statement through accrual accounting concepts rather than direct cash flow. Showing revenue and expenses is incorrect because revenue and expenses belong to the income statement, which includes non-cash items such as depreciation. Showing stock performance is incorrect because market valuation and share price movements reflect exchange trading activity rather than financial statements prepared by the entity. The general rule to remember is that the cash flow statement demonstrates liquidity and cash generation, while the income statement tracks accounting revenues and expenses.
Begin your revision by reviewing official qualification specifications from the Institute of Accountants and Bookkeepers to clarify assessment structures and grading thresholds. Pair official texts with topic-focused practice sets to test recall on ledger entries, reconciliations, and statutory filings.
Work through focused modules in sequence:
Simulate exam conditions by completing full timed sessions using the Start Practice Test module. For Level 1 and Level 2 assessments, pace your work within the 120 minutes allocation. For Level 3 assessments, budget your work across the 180 minutes limit. Note recurring errors in ledger balancing or regulatory concepts, return to syllabus notes, and repeat questions until calculations and definitions become consistent.
No formal entry requirements exist for any of the three qualifications. The Institute of Accountants and Bookkeepers recommends basic numeracy and literacy for candidates beginning the IAB Level 1 Award in Bookkeeping, while prior bookkeeping knowledge is desirable for candidates entering the IAB Level 2 Certificate in Bookkeeping directly.
Passing scores depend on the specific qualification level. At Level 1, you need at least 60% in each assessment. At Level 2, you need 70% in knowledge tests and assignments, and 60% in the examination. At Level 3, passing requires 70% in the knowledge test and 60% in assignments and examination. All three qualifications are graded Pass/Fail.
The longest single assessment time limit varies by qualification. The longest single assessment for the IAB Level 1 Award in Bookkeeping is a 120 minutes assignment. For the IAB Level 2 Certificate in Bookkeeping, the longest single assessment is a 120 minutes examination. For the IAB Level 3 Certificate in Bookkeeping and Accounting, the longest single assessment is a 180 minutes examination.
UK Student Membership costs £125. Candidates register directly with the Institute of Accountants and Bookkeepers or through an accredited training provider. Additional assessment administration or centre invigilation fees may vary by centre, so candidates should confirm current schedules directly with their chosen institution.
The operational registration deadline for the IAB Level 1 Award in Bookkeeping (601/9065/6), Level 2 Certificate in Bookkeeping (601/9061/9), and Level 3 Certificate in Bookkeeping and Accounting (601/9058/9) is 1 March 2027 according to regulatory records from the qualification regulator. Check with the Institute of Accountants and Bookkeepers for individual intake dates.
How we verify: editorial & fact-checking policy. Report an error: contact us.