Specific Competencies and Skills Tested in this Assessment:
Accounting Profession
- Describe career opportunities in the accounting profession
- Explain the need for a code of ethics in accounting and ethical responsibilities required of accountants
Accounting Principles
- Define assets, liabilities, equity, revenue, expenses, gains, and losses
- Describe methods for controlling and safeguarding cash
- Record transactions affecting accounts receivable, including uncollectible accounts, write-offs, and recoveries
- Identify inventory methods
- Determine the cost of inventory for businesses and apply appropriate valuation methods
- Identify, calculate, and record depreciation and depletion and explain the impact on the financial statements
- Apply transactions for accounts payable and other short-term debt
- Record transactions for long-term debt instruments
- Describe and record equity-related transactions
- Describe and record revenue-related transactions
- Analyze transactions involving accruals
- Describe and record expense-related transactions
Accounting Process
- Analyze and describe how basic transactions impact the accounting equation
- Explain the need for adjusting entries and record basic adjusting entries
- Complete the closing process
Financial Reports
- Describe the users and uses of financial information
- Describe the information provided in each financial statement and how the statements relate
Financial Analysis
- Calculate component percentages
- Discuss the information that can be obtained from analyzing financial statements
Special Applications
- Prepare and calculate payroll withholdings
- Prepare and calculate gross pay
- Prepare and calculate net pay
Written Assessment:
Administration Time: 2 hours
Number of Questions: 90
Areas Covered:
- 8% Accounting Profession
- 50% Accounting Principles
- 17% Accounting Process
- 11% Financial Reports
- 5% Financial Analysis
- 9% Special Applications
Sample Questions:
Many people with an accounting degree go on to become the company’s
A. secretary
B. attorney
C. buyer
D. comptroller
The cash receipts journal is used for
A. only cash received on account
B. all cash received
C. only cash sales
D. all credits to cash
The worksheet is completed by recording adjusting entries and extending them along with the information from the
A. trial balance
B. cash receipts journal
C. balance sheet
D. income statement
The primary internal use of financial statements is to
A. assist users in making good business decisions
B. entice investors to invest
C. impress bankers
D. meet government regulations
Calculate the income in dollars if Carl’s Cycle Shop has a total of $5,000 in sales and a gross profit margin of 65 percent.
A. $1,500
B. $1,750
C. $3,250
D. $4,692