FBLA Exploring Accounting & Finance | FBLA Offical

Explain the nature of tax liabilities

The total taxes owed by an individual or business to the government, recorded as a financial obligation on the balance sheet, and must be managed responsibly to ensure compliance and accurate financial reporting.

Maintain financial records

To accurately record and organize financial transactions to ensure reliable reporting and legal compliance.

Balance a bank account

To compare your records with the bank statement to ensure all transactions match and the account total is accurate.

Calculate the cost of credit

Involves determining the total expenses related to borrowing, including interest rates and any associated fees. This assessment helps borrowers understand the financial impact of their credit usage.

Make responsible financial decisions

This means carefully evaluating options, planning, and managing resources to achieve financial goals while avoiding unnecessary risk or debt.

Explain the need to save and invest

Building financial security, preparing for emergencies, and growing wealth over time ensures both short-term needs are met and long-term goals are achieved.

Set financial goals

Done by identifying priorities, planning actions, and tracking progress, as it helps achieve short-term and long-term financial objectives while maintaining discipline and focus.

Describe the need for financial information

Having such knowledge enables informed decisions, planning, and risk management to ensure financial stability.

Explain the concept of accounting

The process of recording, analyzing, and reporting financial transactions to provide accurate information for decision-making, planning, and financial management.

Discuss the nature of the accounting cycle

A series of steps used to record, process, and report financial transactions, ensuring accuracy and consistency in financial statements from the initial transaction to the final reports.

Distinguish among types of business transactions

This can be operating, investing, or financing in nature: operating involves day-to-day activities like sales and expenses, investing includes buying or selling assets, and financing covers borrowing or repaying funds and equity changes.

Distinguish among types of business documentation

Types of this can include invoices, receipts, purchase orders, and bank statements: invoices request payment, receipts confirm payment, purchase orders authorize purchases, and bank statements track account activity.

Demonstrate the effects of transactions on the accounting equation

It affects the accounting equation (Assets = Liabilities + Equity) by increasing or decreasing assets, liabilities, or equity, ensuring the equation remains balanced after every financial event.

Explain the nature of accounting standards

Rules that ensure consistency, accuracy, and transparency in financial reporting, allowing businesses and stakeholders to rely on comparable and trustworthy information.

Demonstrate basic spreadsheet applications

They enable data entry, calculations, and organization to analyze and support informed decisions.

Use accounting applications and systems

They help record, process, and report financial transactions efficiently for accurate and timely decision-making.

Explain forms of financial exchange

There are many options, including cash, credit, debit, and electronic funds transfers, allowing payments and receipts in different forms, each with specific processing methods, timing, and security considerations.

Identify types of currency

Includes paper money, coins, banknotes, government bonds, and treasury notes, used as legal tender or financial instruments for transactions, savings, and investment

Describe the functions of money

Serves as a medium of exchange for buying and selling, a unit of measure to value goods and services, and a store of value to preserve purchasing power over time.

Describe sources of income and compensation

Sources include wages, salaries, tips, commissions, bonuses, and investment earnings, providing individuals with funds to meet expenses and build wealth.

Explain the purposes and importance of credit

Let’s individuals and businesses borrow funds for purchases or investments, providing financial flexibility and helping build credit history.

Explain the role of finance in business

The role includes managing funds, supporting decisions, and ensuring that resources are used efficiently for stability and growth.

Describe the nature of cash flows

Represents the movement of money into and out of a business, showing how cash is generated and used for operations, investing, and financing activities.

Describe the nature of short-term financial management

Focuses on managing cash, receivables, and payables to ensure there’s enough liquidity to meet immediate obligations.

Explain the role and responsibilities of financial management personnel

It manage resources, ensure accurate reporting, and support strategic decisions to achieve goals.

Identify career opportunities in accounting

Careers includes auditor, accountant, tax specialist, and financial analyst, just to name a few.

Explain the roles and responsibilities of accounting professionals

They manage financial records, ensure compliance with laws and standards, and provide insights/support decision-making.

What is the main purpose of saving money?

To prepare for future needs

Which of the following is an example of a financial record?

A bank statement

What does the accounting equation represent?

Assets = Liabilities + Owner's Equity

Which form of financial exchange is the fastest for online shopping?

Electronic Funds Transfer (EFT)

What is a spreadsheet commonly used for in accounting?

Recording transactions

Why is it important to balance a bank account?

To avoid fraud and track spending

Which is a function of money?

Medium of exchange

A short-term financial goal might be:

Saving for a video game

Which type of income comes from working a job?

Wage or salary

What is the role of finance in business?

Managing money to meet goals

Which of the following professionals prepares financial records and tax returns?

Accountant

What happens when you make a business purchase with cash?

Assets decrease

What is the cost of credit?

he interest and fees paid for borrowing money

What kind of tool is QuickBooks?

Accounting software

What is the purpose of financial standards in accounting?

To ensure consistency and accuracy