As the technological age reaches its peak, so does the need to improve assessment for online instruction. Assessment includes all activities that teachers and students undertake to get information that can be used to improve teaching and learning (Black and William,1998b). Assessment is a critical factor of the learning environment. The popularity of distance education and online assessment has forced educational institutions to revise delivery methods, reshape teaching methods and reevaluate learning environments. The transformation in delivery of instruction has consequently brought on the need to reassess how educational institutions are implementing online assessment. According to Allen and Seaman (2008), over 20% of all students took at least one online course in 2006; consequently this has brought more attention to the quality of online instruction. Today, educators are wavering in new territory and educational institutions are forced to adapt to an online environment and change curriculum to meet the needs of learners. The purpose of the study is to investigate pre-service teachers' perceptions of online assessment and its impact on student learning. Online assessment has many benefits. Like ice-cream, it comes in a wide array and can be encrusted in several arrangements. Instructors have the capability to create test-banks that include multiple-choice, true/false, completion, essay writing or matching. Reports are easily generated to allow instructors to preview grades, participation, and assessment results for the entire class or individual students at any time. Since many distance education courses are either asynchronous or synchronous, students benefit by having more flexibility. At this juncture, the effects of attitudes for online assessment vary. The complexity of teaching or taking online courses can be overwhelming for some and impossible for others. Successful online instructors incorporate a variety of instructional strategies and implement a variety of formative assessments to maximize learning benefits. Online assessments are relatively new because they have been emphasized in predominately face-to-face environments. (Contains 8 tables.)