Accounting–Basic

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
• Analyze transactions involving owners’ equity

 

Posting 

• Post to general and subsidiary ledger accounts 
• Demonstrate understanding of multicolumn ledgers
• Demonstrate familiarity with computerized posting methods
• Use appropriate posting references 
• Reconcile subsidiary to general ledgers

 

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 controls for the protection of company assets and property
• Exhibit familiarity with confidentiality and ethics

 

Basic Accounting Knowledge and Skills

• 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 comupter
• Identify various business entities
• Determine classification of accounts and identify normal balances
• Generate and interpret spreadsheets, charts, and graphs

 

Written Assessment: 

Administration Time: 3 hours   

Number of Questions: 190



Areas Covered:

7% Journalizing

10% Posting

17% Payroll Preparation

15% Cash and Banking Procedures

10% Merchandise Inventory

14% Completion of Accounting Cycle

5% Identification and Application of Source Data

8% Security

14% Basic Accounting Knowledge and Skills

 

Sample Questions: 

When the owner takes merchandise for personal use, it will _____ account.

1. decrease the Drawing
2. decrease the Expense
3. increase the Capital
4. increase the Drawing

 

Use the Posting Reference (PR) column in the General Ledger to

1. trace the entry to the book of final entry
2. show the accountant that the transaction was posted in the General Ledger
3. trace the transaction to the original book of entry 
4. show which employee posted the record to the General Ledger

 

Taxes that are the employer’s sole responsibility are considered to be a/an  

1. expense of a business
2. asset of a business
3. deduction from capital
4. addition to employee earnings

 

A signed statement ordering a bank to pay cash from funds already deposited in that bank is a 

1. check 
2. promissory note  
3. bill of lading 
4. transfer

 

An actual count of merchandise is called a _____ inventory.

1. physical 
2. perpetual 
3. merchandise control 
4. supply 

 

Performance Assessment: 

Administration Time:  3 hours and 25 minutes  

Number of Jobs: 7 

 

Areas Covered: 

7% Identification of Account Balances  

Participant will have a list of accounts that need to have indicated the normal balance by placing a check mark in the appropriate debit or credit column.

  

31% Journal Entries 

Participant will use the spreadsheet provided and record entries for each document in the general journal.

 

10% Posting Verification 

Participant will accurately prepare a schedule of accounts receivable using the information provided.          

 

9% Banking 

Participant will accurately prepare a schedule of accounts receivable using the provided information.         

 

18% Payroll 

Participant will compute net pay for employees using correct formatting.

 

9% Complete Worksheet 

Participant will legibly complete the adjusted trial balance columns, totaling the income statement and balance sheet columns.  

 

16% Financial Statements 

Participant will use the worksheet provided to prepare an income statement, statement of owner’s equity, and balance sheet, including proper heading.

 

Sample Job:

Posting Verification  

Maximum Time: 15 minutes  

Participant Activity:  Schedule of Accounts Receivable, trial balance, legibility, and time to complete the job.