Accounting I

Type: Individual 

Overview:
60-minute test administered during the Section and State Leadership Conferences. Participants must not have had more than two (2) semesters or one (1) semester equivalent to a full year in block scheduling in high school accounting instruction.

Objective Test Competencies: Journalizing; Account Classification; Terminology, Concepts, and Practices; Types of Ownership; Posting; Income Statement; Balance Sheet; Worksheet; Bank Reconciliation; Payroll; Depreciation; Manual and Computerized Systems; Ethics

Skills: The accurate keeping of financial records is an ongoing activity in all types of businesses. This event provides recognition for FBLA members who have an understanding of and skill in basic accounting principles and procedures.

ELIGIBILITY
Participants must not have had more than two (2) semesters (or one [1] semester equivalent to a full year in a block scheduling program) of high school accounting instruction, nor be enrolled in or have completed any additional accounting courses.

The participant may not have previously competed in this event or Accounting II at the national level.

SECTION CONFERENCE: Each chapter may enter three (3) members. (Refer to Objective Tests Guidelines for more information on number of members)
STATE CONFERENCE: A minimum of the top six (6) places from section competition will represent their section at the State Leadership Conferene. This event qualifies for a wild card entry.
NATIONAL: The top four (4) places in state competition will represent California at the National Leadership Conference.

GUIDELINES (It is highly recommended that competitors read all guidelines)
Objective Test
General (All Events)
General Competitive Events Tips
Objective Event Tips

 Preparation

Sample Practice Materials
Sample Practice PDF #1
Sample Practice PDF #2

Format Guide

   Format Guide PDF

Website Resources
Bean Counter's Bookkeeping & Accounting Quizzes, Games, and Lectures
Investopedia
Principles of Accounting
UCD Accounting Glossary
FBLA Financial Literacy Initiative

Competencies

Tasks  

Journalizing

1. Prepare a multi-column journal for recording data.
   2. Record transactions such as accounts receivables and accounts payables in appropriate journals.
   3. Journalize or record business transactions in a journal (e.g., cash receipts, cash payments, purchases, sales, and general).
   4. Journalize adjusting and closing entries for a business.
   5. Prove and rule journals.

Account Classification

1. Evaluate assets and liabilities to determine their function in an accounting system.
   2. Identify asset accounts.
   3. Identify liability accounts.
   4. Identify capital or owner’s equity accounts.
   5. Create a chart of accounts to reflect business needs and update as needed.
   6. Differentiate fixed assets, intangible assets, and current assets.
   7. Differentiate between current and long-term liabilities.

Terminology, Concepts, and Practices

1. Identify the steps in the accounting cycle.
   2. Identify and apply the accounting equation.
   3. Maintain knowledge of current financial laws, regulations, and policies to ensure compliance in financial practices.
   4. Identify resources to provide information on financial laws, regulations, and policies.
   5. Describe the different types of financial statements; explain their purpose and compare the difference.
   6. Define general accounting terms such as asset, liability, accounts payable, capital, income, expense, etc.
   7. Define double entry accounting, debits, and credits.
   8. Describe the purpose of accounting and the role it plays in our economy.
   9. Describe the purpose of the GAAP.

Types of Ownership

1. Identify types of business organizations and functions.
   2. Identify business reporting and information flow required for types of ownership.
   3. Explain the characteristics associated with corporations.
   4. Define the advantages and disadvantages of corporations.
   5. Explain the characteristics of partnerships.
   6. Define the advantages and disadvantages of partnerships.
   7. Explain the characteristics of sole proprietorships.
   8. Define the advantages and disadvantages of sole proprietorships.
   9. Compare the accounting implications for different types of business ownership.

Posting

1. Post from journals to a general ledger.
   2. Post from journals to a subsidiary ledger.
   3. Record the posting in the journal and ledger reference columns.
   4. Balance and verify the ledger accounts.
   5. Prepare a trial balance.
   6. Post adjusting and closing entries.
   7. Prepare schedules for subsidiary ledgers.

Income Statement

1. Apply income statement equation to determine revenue and expenses.
   2. Prepare an income statement that reports the results of operations for any entity.
   3. Interpret the information on an income statement.

Balance Sheet

1. Classify account titles into assets, liabilities, and owners equity for balance sheet.
   2. Prepare a balance sheet that reports the financial condition of the entity.
   3. Interpret the information found on a balance sheet.

Worksheet

1. Identify information needed in preparation of a worksheet.
   2. Record adjustments on the worksheet.
   3. Prepare trial balance, income statement, and balance sheet sections of the worksheet.

Bank Reconciliation

1. Maintain a check register.
   2. Compare checkbook to bank statement.
   3. Identify inequalities and make adjusting entry.
   4. Prepare a bank reconciliation statement.
   5. Journalize banking transaction.

Payroll

1. Identify methods used to determine gross earnings (e.g., piece-rate, hourly, commission).
   2. Explain the purposes of withholdings and other deductions.
   3. Verify time and wage documents (e.g., time cards, etc.).
   4. Compute employee gross earnings, deductions, and net pay.
   5. Maintain employee earnings record.
   6. Journalize payroll transactions.
   7. Record payroll earnings and deductions in a payroll register.
   8. Prepare payroll checks and vouchers.
   9. Complete federal and state employment forms such as W-4, W-2, quarterly reports, and unemployment tax forms.

Depreciation

1. Identify the appropriate method for calculating depreciation.
   2. Determine depreciation using straight-line, units of production, double-declining balance, and sum of the years’ digits.
   3. Maintain records for depreciation of plant assets.
   4. Journalize and post depreciation on plant assets.

Manual and Computerized Systems

1. Operate appropriate financial software to generate useable data.
   2. Operate electronic spreadsheet software to create formulas and reports.
   3. Adapt accounting and recordkeeping functions to current computerized systems.
   4. Use a spreadsheet to prepare payroll, create worksheets, and other reports.
   5. Enter appropriate data and print checks to process payroll.
   6. Identify and review financial management software packages that meet company needs.

Ethics

1. Identify confidentiality concepts and policies.
   2. Identify characteristics of professional conduct.
   3. Identify and practice good ethical behavior.
   4. Differentiate between good and poor business ethics.
   5. Adhere to established company rules, regulations, and policies.
   6. Identify issues and trends affecting computers and information privacy.
   7. Implement security measures to minimize loss and to create trust (e.g., maintain data security, develop strategies to protect data, etc.).

Alignment

NBEA Standards

• Accounting
• Computation
• Economics & Personal Finance

Career Clusters

• Business Management & Administration
• Finance
• Government & Public Administration
• Marketing, Sales, & Service