Abstract: This study compared the Local Item Dependency from Inter-Item Correlation Matrix and Principal Component Analysis from Factor Analysis for Dimensionality of Multidimensional Dataset. Exploratory research design was adopted for the study. A representative sample of six hundred (600) students were systematically sampled from Twelve (12) schools that participated in the study through multi-stage sampling technique. 2013 West African Senior School Certificate Examination (WASSCE) Financial Accounting Objective test items was adopted as instrument for the study.