Accounting I

Category: Objective Test
Type: Individual

Overview

60-minute test administered during the National Leadership Conference (NLC). 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


Guidelines

Objective Test Guidelines
Objective Test Guidelines
  • No materials may be brought to the testing site.
  • Electronic devices must be turned off and out of sight.
  • No calculators may be brought into the testing site; calculators will be provided.
  • Bring a writing instrument.
General Guidelines

The general event guidelines below are applicable to all national competitive events. Please review and follow these guidelines when competing at the national level. When competing at the state level, check the state guidelines since they may differ.

Eligibility

  • Dues: Competitors must have paid FBLA national and state dues by 11:59 p.m. Eastern Time on March 1 of the current school year.
  • NLC Registration: Participants must be registered for the NLC and pay the national conference registration fee in order to participate in competitive events.
  • Deadlines: The state chair, or designee, must register each state competitor on the official online entry forms by 11:59 p.m. Eastern Time on the second Friday in May.
  • Each state may submit four (4) entries in all events except LifeSmarts, Virtual Business Finance Challenge, and Virtual Business Management Challenge.
  • Each competitor can only compete in one (1) individual/ team event and one (1) chapter event.
  • Each competitor must compete in all parts of an event for award eligibility.
  • A team shall consist of two or three members. Exceptions are Parliamentary Procedure which must be a team of four or five members, and LifeSmarts which must be a team of two members.

Repeat Competitors

Competitors are not permitted to compete in an event more than once at the NLC unless one of the following circumstances applies:

  • Modified Events: A competitor may compete in the same event when the event is modified. Note, if the only modification is a name change, competitors may not compete in the renamed event.
  • Team Events: One (1) competitor of the team may have competed in the same event at one (1) previous NLC; however, they may not compete more than twice in the event at the national level.
  • Chapter Events: Competitors may compete in a chapter event more than once (American Enterprise Project, Community Service Project, and Partnership with Business Project).
  • Individual Entry: A competitor who competed as an individual entry in a team event at the national level may compete in the same event a second time as part of a team, but not a second time as an individual.
  • Parliamentary Procedure: Two (2) competitors of the team may have competed in this event at a previous NLC; however, they may not compete more than twice at the national level.
  • Pilot Event: Competition in a pilot event does not disqualify a competitor from competing in the same event if it becomes an official competitive event. The participant may compete in another event as well as a pilot event.

Breaking Ties

  • Objective Tests: Ties are broken by comparing the correct number of answers to the last 10 questions on the exam. If a tie remains, the competitor who completed the test in a shorter amount of time will place higher. If this does not break the tie, answers to the last 20 questions will be reviewed and determine the winner.
  • Objective and Production Tests: The production test scores will be used to break a tie.
  • Objective Tests and Performances: The objective test score will be used to break a tie based on the tie-breaking criteria of objective tests.
  • Reports/Projects and Performances: The report/project scores will be used to break a tie.
  • Performances: Judges must break ties and all judges’ decisions are final.

National Deadlines

  • State chair/adviser must register all competitors for NLC competitive events online by 11:59 p.m. Eastern Time on the second Friday in May.
  • All prejudged components (reports, websites, projects, statement of assurance) must be received by 11:59 p.m. Eastern Time on the second Friday in May.
  • All prejudged projects and reports must be submitted electronically.
  • All Statements of Assurance must be submitted online.
  • All production tests must be received at FBLA-PBL by 11:59 p.m. Eastern Time on the third Friday in May.
  • All production tests must be uploaded online.
  • State chair/adviser may make name changes only (no additional entries) by 11:59 p.m. Eastern Time on the first Friday in June. Competitor drops are the only changes allowed after this date and onsite.

National Awards

The number of competitors will determine the number of winners. The maximum number of winners for each competitive event is 10. Only one (1) award is given to the schools competing in chapter events (American Enterprise Project, Community Service Project, Local Chapter Annual Business Report, and Partnership with Business Project).

Additional Materials

Certain events may allow the use of additional materials. Please refer to event guidelines.

Americans with Disabilities Act (ADA)

FBLA‑PBL meets the criteria specified in the Americans with Disabilities Act for all participants who submit a special needs form.

Recording of Presentations

No unauthorized audio or video recording devices will be allowed in any competitive event. Participants in the performance events should be aware the national association reserves the right to record any performance for use in study or training materials.


Preparation

Sample Practice Materials

Format Guide

Competencies
Competency
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

Eligibility

States may submit up to 4 entries.
Competitors must be registered for NLC and pay registration fee.
Competitors must pay dues by 11:59 p.m. Eastern on March 1.

Timeline

Test: 1 hour