The aim of this study is to investigate the relationship between attempting online formative assessments and performance of students. The study is motivated by the dearth in research in the area of online formative assessment. The study reports mixed result of such relationship. A relationship was reported between attempting online formative assessments and performance in the mid-semester exam and each topic in the mid-semester exam. On the contrary, such relationship was not reported in regard to performance in the final exam and most topics examined in the final exam. The reason behind such findings can be attributed to the difference in the structure of questions in the final exam compared to those provided in online formative assessments, difference in complexity of topics and higher workload of students in studying specific topics. The findings of the present study have implications for accounting educators in regard to the use of on-line formative assessments and development of syllabus.