This paper investigates the impact of online formative assessments on students' performance in an introductory accounting module. The online formative assessments were objective tests and a regression model was developed to test the relationship between formative assessment usage and exam performance. The statistical analysis shows a statistically significant correlation between formative assessment usage and examination performance while controlling for different variables. These findings lead to the conclusion that formative assessments are useful tools that can support students' learning. Implications and recommendations for further research are covered.