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.