Specific Competencies and Skills Tested in this Assessment:
Journalizing
- Apply the accounting equation to journalize an opening entry
- Follow principles of double-entry bookkeeping in the journalizing process
- Adjust for bad debts using direct write-off or allowance methods
- Analyze transactions involving owners’ equity
Posting
- Post to general and subsidiary ledger accounts
- Demonstrate understanding of multicolumn ledgers
- Demonstrate familiarity with computerized posting methods
- Reconcile subsidiary to general ledgers
- Use appropriate posting references
Payroll Preparation
- Calculate employee earnings, including salary, hourly, overtime, and commission
- Demonstrate familiarity with electronic payroll data entry
- Complete a payroll register
- Prepare a payroll check and check stub with appropriate information
- Record information found on W-4 forms in employee data section
- Calculate appropriate employee payroll taxes
- Calculate appropriate employer payroll tax liabilities
- Determine appropriate deposit dates and documentation, and prepare federal tax forms
- Journalize payroll entries at end of earnings period in general journal
Cash and Banking Procedures
- Complete check stubs and checks
- Enter appropriate data on a deposit slip
- Reconcile a bank statement
- Demonstrate familiarity with online and electronic banking procedures
- Exhibit understanding of credit cards and/or debit cards
- Manage multiple bank accounts and transactions
- Reconcile and replenish petty cash funds
Merchandise Inventory
- Demonstrate knowledge of a merchandise inventory account using perpetual and periodic methods
- Analyze effects on accounts by the purchase of goods
- Calculate the cost of goods sold
- Prepare adjusting entries based on physical inventory
- Calculate for obsolete or a shrinkage of inventory
Completion of Accounting Cycle
- Complete 8 or 10 column worksheets
- Prepare the financial statements from a completed worksheet
- Verify the financial statements against the worksheet for accuracy
- Record and post adjusting and closing entries
- Locate and correct accounting errors
- Prepare post-closing trial balance from general ledger
Identification and Application of Source Data
- Identify and locate appropriate business forms used in bookkeeping and/or accounting
- Apply procedures for using electronic data for various bookkeeping and/or accounting purposes
- Interpret and identify information contained in source documents
Security
- Exhibit familiarity with the internal controls for sensitive source documents
- Exhibit familiarity with the internal controls for e-commerce
- Exhibit familiarity with internal control for the protection of company assets and property
- Exhibit familiarity with confidentiality and ethics
Basic Accounting Knowledge
- Exhibit understanding of terminology relating to accounting
- Exhibit understanding of careers in accounting
- Exhibit understanding of regulatory bodies
- Demonstrate ability to use calculator, 10-key, and computer
- Identify various business entities
- Determine classification of accounts and identify normal balances
- Generate and interpret spreadsheets, charts, ad graphs
Advanced Accounting Practices
- Exhibit understanding of cash or accrual accounting
- Differentiate between proprietorship, partnership, corporation, and departmental accounting procedures
- Exhibit understanding of stocks, declarations, and payment of dividends
- Calculate and record depreciation and amortization
- Calculate and analyze financial ratios
Written Assessment:
Administration Time: 3 hours
Number of Questions: 219
Areas Covered:
Journalizing: 9%
Posting: 9%
Payroll Preparation: 15%
Cash and Banking Procedures: 13%
Merchandise Inventory: 9%
Completion of Accounting Cycle: 12%
Identification and Application of Source Data: 5%
Security: 7%
Basic Accounting Knowledge and Skills: 12%
Advanced Accounting Principles: 9%
Sample Questions:
When the owner takes merchandise for personal use, it will _____ account.
- decrease the Drawing
- decrease the Expense
- increase the Capital
- increase the Drawing
Use the Posting Reference (PR) column in the General Ledger to
- trace the entry to the book of final entry
- show the accountant that the transaction was posted in the General Ledger
- trace the transaction to the original book of entry
- show which employee posted the record to the General Ledger
Taxes that art the employer’s sole responsibility are considered to be a/an
- expense of a business
- asset of a business
- deduction from capital
- addition to employee earnings
A signed statement ordering a bank to pay cash from funds already deposited in that bank is a
- check
- promissory note
- bill of lading
- transfer
An actual count of merchandise is called a _____ inventory.
- physical
- perpetual
- merchandise control
- supply
Performance Assessment:
Administration Time: 3 hours
Number of Jobs: 7
Areas Covered:
26% Journal Entries
Participant will use the spreadsheet provided and record entries for each document in the general journal.
9% Posting Verification
Participant will accurately prepare a schedule of accounts receivable using the information provided.
15% Payroll
Participant will compute net pay for employees using correct formatting.
7% Complete Worksheet
Participant will legibly complete the adjusted trial balance columns, totaling the income statement and balance sheet columns.
14% Financial Statements
Participant will use the worksheet provided to prepare an income statement, statement of owner’s equity, and balance sheet, including proper heading.
10% Ratio and Partial Horizontal Analysis
Participant will use the account balances and formulas provided to calculate working capital, current ratio, and acid-test ratio.
19% Advanced Journal Entries
Participant will use the transactions provided to create a general ledger.
Sample Job:
Posting Verification
Maximum Time: 15 minutes
Participant Activity: The test participant will be asked to prepare a schedule of accounts receivable and a post-closing trial balance.