This study evaluates the concurrent validity of an on-line Yes/No test of recognition vocabulary as a placement tool at an Australian English language school. Newly entering students (n =88) completed a Yes/No test, which measured accuracy and speed of response, and a school placement battery consisting of grammar, writing, speaking and listening measures. Yes/No test accuracy performance approximated that of the listening and grammar placement tests, discriminating between placement levels and correlating with overall placement decisions. Placement level decisions correlated with Yes/No accuracy (r =.6) and the discrete-point placement measures listening (.7) and grammar (.8). Yes/No test accuracy showed a consistently strong correlation (.6) across all test measures, indicating that recognition vocabulary knowledge is a fundamental element in all tests. Response time as an independent measure followed the same pattern as the accuracy results but was less sensitive to differences in placement levels. A hierarchical regression analysis showed that when combined with accuracy, response times account for an additional amount of unique variance in the placement decision. The usefulness the on-line Yes/No test format in placement testing is discussed.