In 1991 the Measurement and Evaluation Center of the University of Texas at Austin was asked to develop a test for credit by examination in four lower division courses in Japanese. The test (in Japanese) was constructed from locally developed items provided by instructors of Japanese. The developed test consisted of 80 items distributed among grammar, listening, and reading sections, with the listening section recorded on tape by instructors. The initial version was administered to 166 students in 1 course and 66 in another. Items with poor psychometric properties were edited or removed and new items were introduced. For validation, the revised test was administered to 170 students in spring 1992 (2 second semester courses) and 231 students in fall 1992 (2 first semester courses). Correlation coefficients for all four sections were acceptable. After analyzing the data and meeting with the instructors, test developers set cut scores for credit in each course. These scores allow students to earn credit with grades of A, B, or C. Sixteen tables display student scores, and one figure illustrates the cut scores. (SLD)