Accounting Basic Job Ready Credential Notes

General Assessment Information

  • Assessment Code: 4100 / Version: 01
  • Conducted by: NOCTI (National Occupational Competency Testing Institute)
  • Purpose: To validate educational attainment in accounting through technical assessments.
  • Format: Delivered both online and paper/pencil.

Test Overview

  • Test Type: Accounting-Basic industry-based credential.
  • Assessment Includes: Written and performance components.
  • Administration Team: Comprised of representatives from Georgia, Idaho, Michigan, Missouri, and Pennsylvania.

Written Assessment Details

  • Duration: 3 hours
  • Total Number of Questions: 190
  • Administration Sessions: Can be split into 1, 2, or 3 sessions.

Assessment Competencies

  • The assessment measures both factual and theoretical knowledge.

Specific Standards and Competencies Covered

Journalizing
  • Apply accounting equation for opening entries.
  • Follow double-entry bookkeeping principles.
Posting
  • Post transactions to general and subsidiary ledgers.
  • Understand computerized posting methods.
Payroll Preparation
  • Calculate various employee earnings (salary, hourly, overtime).
  • Fill out payroll registers and checks.
  • Record information from W-4 forms.
Cash and Banking Procedures
  • Complete checks and check stubs, reconcile bank statements.
  • Understand electronic banking and manage multiple bank accounts.
Merchandise Inventory
  • Understand perpetual and periodic inventory methods.
  • Calculate cost of goods sold.
Completion of Accounting Cycle
  • Complete worksheets and prepare financial statements from them.
  • Record adjusting and closing entries in journals.
Identification and Application of Source Data
  • Identify business forms used in bookkeeping.
  • Use electronic data for bookkeeping purposes.
Security Measures
  • Understand internal controls for sensitive documents and e-commerce.
Basic Accounting Knowledge and Skills
  • Familiarity with accounting terminology and careers.
  • Ability to use calculators and computers effectively.

Sample Questions

  • Example Question: When the owner takes merchandise for personal use, it will _ account.

    • A: decrease the Drawing
    • B: decrease the Expense
    • C: increase the Capital
    • D: increase the Drawing

  • Accounting Fundamentals: Key terminology and fundamental concepts are vital for understanding performance tasks and assessment questions.

Performance Assessment Details

  • Allows demonstration of skills by completing actual tasks formatted around common accounting scenarios.
  • Duration: 3 hours and 30 minutes
  • Number of Tasks: 7 tasks include:
    • Identification of Account Balances: Indicate normal balance (7%)
    • Journal Entries: Record entries in journal (31%)
    • Posting Verification: Schedule of accounts (10%)
    • Banking: Prepare bank reconciliation (9%)
    • Payroll: Compute net pay and total payroll register (18%)
    • Complete Worksheet: Adjusted trial balance (9%)
    • Financial Statements: Prepare income statement and balance sheet (16%)

Sample Job Activity

  • Task: Posting Verification
  • Maximum Time: 15 minutes
  • Activity: Prepare a schedule of accounts receivable and trial balance accurately using provided records.