Specific Competencies and Skills Tested in this Assessment:
Journalizing
- Demonstrate knowledge of analyzing debits and credits on source documents
- Demonstrate understanding of how to apply Generally Accepted Accounting Principles (GAAP)
- Exhibit understanding of how to follow principles of double-entry bookkeeping in the journalizing process
- Analyze transactions involving equity
- Identify and compute adjusting entries
- Describe accounts receivable and payable
Posting
- Demonstrate understanding of how to post to general and subsidiary ledger
accounts - Identify and correct posting errors
- Demonstrate knowledge of how to reconcile subsidiaries to general ledgers
- Display understanding of how to manage accounts receivable and payable
Payroll Preparation
- Calculate employee earnings and create records
- Calculate appropriate employer payroll tax liabilities
- Calculate and journalize payroll entries at end of earnings period in general journal
- Demonstrate understanding of how to prepare a payroll check and check stub with appropriate information
Cash and Banking Procedures
- Demonstrate understanding of how to reconcile a bank statement
- Demonstrate knowledge of how to complete deposit tickets, check stubs, and checks
- Exhibit understanding of credit cards and/or debit card accounts
- Demonstrate understanding of how to reconcile and replenish petty cash fund
Completion of Accounting Cycle
- Display knowledge of how to complete 8 or 10 column worksheets
- Demonstrate knowledge of how to prepare and verify the financial statements from a
completed worksheet - Demonstrate understanding of how to record and post adjusting and closing entries
- Demonstrate knowledge of how to locate and correct accounting errors
Identification and Application of Source Data
- Identify and analyze appropriate business forms used in bookkeeping and/or accounting
- Identify and analyze electronic data for various bookkeeping and/or accounting purposes
- Interpret and analyze information contained in source documents
Basic Accounting Knowledge and Skills
- Exhibit understanding of terminology relating to accounting
- Exhibit understanding of careers in accounting and regulatory bodies
- Demonstrate knowledge of internal controls (e.g., segregation of duties)
- Determine classification of accounts and identify normal balances
- Display knowledge of how to generate and interpret spreadsheets, charts, and graphs
Written Assessment:
Administration Time: 3 hours
Number of Questions: 190
Areas Covered:
21% Journalizing
10% Posting
10% Payroll Preparation
12% Cash and Banking Procedures
15% Completion of Accounting Cycle
14% Identification and Application of Source Data
18% Basic Accounting Knowledge and Skills
Sample Questions:
The transaction that would result in a debit to Liability and a credit to Assets is the
A. payment of cash to a creditor
B. purchase of equipment on account
C. receipt of cash from a customer
D. issuance of common stock for cash
An increase in a liability typically indicates a
A. payment of cash to a supplier
B. return of merchandise to a vendor
C. receipt of cash from a customer
D. purchase of merchandise on account
Posting is the process of
A. entering transactions into the journal
B. analyzing financial statements
C. recording transactions in chronological order
D. transferring journal entries to ledger accounts
Form W-4 is used to
A. verify an employee’s eligibility to work
B. report non-employee compensation to the IRS
C. file quarterly federal tax returns for employers
D. determine the amount of federal income tax withheld
Bank expense is the account that gets debited for a/an
A. increase in owner’s equity
B. deposit made by a customer
C. bank service fee
D. loan repayment
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.