Accounting Application Management

7/25/2019 Accounting Application Management

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2/11

Definite Do s

&

Dangerous Don ts

Definitely Do

Dressprofessionally

Beconfident!

Takepencil/pen,paper,&calculator

Findoutif youcanuseyournotes

Knowyourjudge'sname

Useyourjudge'sname

Introduceyourself

Smile

GiveyourjUdgeafirm, confidenthandshake

Makeappropriateeyecontact

Situpstraightandleanslightlyforward,

showinginterestandconfidence

Act'thepart'

Usekeywordsfromtheperformanceindicators

Becreative

Usenoteseffectively

Say"Thankyou"

Prepare!

Definitely Don t:

Wastethejudge'stime,be

serious

Usefoul language

Chewgum

Wearearringsallovertheplace

Confuseprofessionaldresswiththe

latestMTVfashiontrend

Readword-for-wordfromyournotes

Forgetaperformanceindicator

Try

not to be nervous:

Prepare&beconfident

Alittlenervousenergycanbeto

youradvantage

RealizeyourjUdgeissomeonewhocares

aboutthefuture

o

youngstudents

Thismaybeyourjudge'sfirsttimetojUdge;

he/shemaybealittlenervous,too

Think

o

thejUdgeassomeonewhoowes

youmoney

PicturethejUdgein his/herunderwear

Youhavenothingtolose!

6

How to Stand Out

and Be Memorable

Each judge may see 10, or even 20 students

competingin thesamerole-playarea. Aftersee

ing the first five or six, sometimes things geta

littlefoggy, especiallyforsome

o

usoldfolks.

So,whatareyoutodo? Nomatterwhereyouare

in

thelineup, you have to do aGREATjob. I

helpsi fyouarecreativeandanswertheperform

anceindicatorsinuniqueways.

ere are some ideaso being memorable

Confidentlyintroduceyourselfandgiveafirm

handshake,lookingme

in

theeyenicely.

Smile, be excited like you're having fun, and

be friendly (sounds simple d o e s n t ~

it - so many competitors never

smile!)

If a performance indicator directs

you to explain something such as a window

display, drawit out. Useyoursketchtopoin

outthefeaturesandbenefits

o

youridea.

Drawchartsorgraphswheneverrelevant.

Saythingslike,"I'mreallyexcitedaboutthis

idea,"

or

"I'mlookingforwardtoournext

meeting." Basically,just useexcitementand

reallyactthepart.

Forperformanceindicatorsdirectingyouto

explainaconcept,makesureyoustatewhat

theconcept is anddefine

it

Giveexamples

o

theconcept,too.

Takecontrolo therole-play.Youonlyhave

5-10minutestocoveralltheperformance

indicators. Useyourtimewisely. Don't

rambleonandon,butdon'tbetoobrief

either.

In theend,askyourjudgeifhe/shehasany

furtherquestions.

Afterclosingtherole-play, sincerelythank

yourjudgeforvolunteeringhis/hertime.

Giveyourjudgeafinalfirmhandshake.

7


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The next

section is filled

with examples

of

performance indicators

which you may see in

your role-playing event.

After each performance indicator, I've

given a sample answer you might use

when talking to me during your role

play. The answers provided will

range from a variety

of

role-playing

situations. I couldn't cover them all,

but read on for a few ideas.

Performance

Indicators

Role-plays cover a variety of different "real-world"

work situations. If you have worked in the occu

pational field you are competing in, you may have

dealt with a similar situation as your actual role

playing event. This is one advantage to having

previous work experience.

If

you

have not worked in the field

you

will be

competing

in,

or even if

you

do have experience,

here are a few ideas to build your knowledge:

./ Read role-playing events and answer the

performance indicators

./ Make a list of questions, then interview

someone who actually works

in

the area of

your role-playing event

./

'Shadow' several people who work

in

your competitive-event field

./ Surf the Internet for industry-related

information

./

Read industry-related trade journals

The broader your knowledge

in

the

follOWing

instructional area s, the better your chances of

shining in a role play:

Business Law

Communication

Economics

Emotional Intelligence

Financial Analysis

Marketing

Operations Distribution

Pricing Promotion

Selling

Professional Development

Strategic Management

Human Relations Management

Information Management

Marketing-Information Management

Product/Service Management

I know you can't be an expert in everything, but

learn as much as you can!

Performance Indicator Ideas & Answers

AccountingApplications

Instructional Area: EMOTIONAL INTELLIGENCE

1 Develop Cultural

Sensitivity

"Mr. Smith (use your judge's actual name), when

dealing with clients of various cultures, we must taken

into account the differences

in

their mindsets about

their businesses as well as their money and invest

ments. The Japanese take business relationships

seriously, and like to feel a trust and friendliness be-

tween their business associates. Our American clients

primarily discuss business only, with just a few seek

ing friendship among our dealings. We must be

aware of these differences and many others so we

can meet the mission of our firm

to

become a leader

in global investing."

2 Demonstrate

a

Customer Service

Mindset

"Mr. Williamson, you will be pleased to know that

our on-line system

is

the leader

in

the industry with

awards for security. You can rely

on

us for safeguard

ing your information and making it convenient, but

totally private to you."

3 Show Empathy

for

Others

"I

understand you would like to see higher returns,

as we would like to as well. These investments are

only meeting our lowest expectations currently and we

want to work with you

on

transferring funds at the opti

mal time and into the best investments for your current

and future needs."

4 Foster positive working

relationships /

Persuade others

"I

have some exciting ideas about the savings

program for kids. The idea involves all the customer

service representatives. I think you'll like these ideas

and I'll be happy to explain the details at the next

meeting. This will give you the time you've been need

ing to research other promotional ideas I:}-

for the bank." *'.

~

Handle

Difficult

Customers

~ l ?

"I'm so sorry for the error on your

mailing address. Mr. Tye, we already _

have this corrected

in

our system and it

will not happen again. You will enjoy this order

as

well

as your next order of checks on

us

and they are to

arrive tomorrow."

6

Use

onflict

Resolution Skills

"I

know you're upset, but I'd like to ask you to

please relax for a moment so

we

can discuss this

in

a

win-win manner. We CAN solve this problem."

7

Explain the role

o

eadership

in business

"When used properly, leadership provides motiva

tion and helps create productivity within a business.

Followers look for fairness, honesty, and inspiration

from their leaders. Not only is management the obvi

ous leader, but often, another employee can become a

leader within a company. It is critical for a leader to

have a positive attitude toward work and the business,

or his/her actions will have a negative impact

on

all

involved. When a positive attitude

is

held by a leader, it

will have a great affect

on others."

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Performance Indicator Ideas Answers


Instructional Area: ECONOMICS

1 istinguish between goods and services

Mr. Williams, goods, such as inventory are tangi

ble, meaning you

can

touch the items. Services, such

as

entertainment, delivery services, gift wrapping ser

vices, and consulting services are business offerings

but customers can't actually touch the services. Our

firm offers bookkeeping, which

is

a service. It

is

a part

of the product/service mix o f our business. Product

is

the

term

which

is

often used to describe both goods

and services."

2

Explain the concept

of

competition

"Competition

is

the struggle between businesses

for the customer's dollar. Due to price competition,

which creates very competitive pricing, a business

must use its resources effectively. Non-price competi

tion

affords the customer with friendly service and

additional services such

as

free delivery. Competition

also forces businesses to find

new,

unmet niches."

3

Explain the principles

of

supply and demand

"Supply is the amount of a product the seller is

willing to supply. Demand

is

the amount of a product

the

potential customer

is

willing and

has

the ability to

buy.

When supply and demand are the same, no

shortages or surpluses exist. This

is

known as equilib

rium. A shortage of a product causes a business to

miss out on

profit opportunities, and a surplus ties

up

money in inventory."

4

Explain the

concept

of

productivity

"Productivity

is

the output o f work, per worker,

often measured per hour. When labor exceeds a cer

tain percent of sales, layoffs or simply sending some

one home early one day may be

necessary to keep

expenses down and productivity

in

line with company

expectations. Depending on a businesses technology,

productivity may

be

measured on computer.

Other methods of improving productivity are ad

vanced employee training

or

new, easier-to-use ad

vanced equipment. Training can enable employees to

work quicker and smarter in less time."

5 etermine the

impact

of

business

cycles on

business activities

"During times of a healthy economy, measured

by low unemployment and low inflation, customers

tend to have discretionary income which allows them

to

continually spend on items of want. Discretionary

income

is

money left after all necessities and taxes

are paid. Since employment is

at all-time highs during

prosperity, most people are working full-time and have

substantial discretionary incomes.

During times of economic slow-down, measured

by rising prices and layoffs, people may not be able to

spend on wants. They may be looking for items with

durability; items that will last.' Seamstresses and

me-

chanics may be busy during recessionary times and

especially in a depression. Instead of buying new,

people will be mending the clothing they have and

fiXing their cars

in

order to save money. The four busi

ness cycles measured by economists are prosperity,

recession, depression, and recovery."


Accounting Applications

nstructional Area: STRATEGIC and

HUMAN RESOURCE MANAGEMENT

1

escribe the nature of managerial control

"Controlling

is

measuring what

is

actually being

accomplished with what was planned to be accom

plished. Standards and evaluations are a part of con

trolling and should always be compatible with the mis

sion of the organization."

2

Explain the concept

of

management

"Some people think of management only

as

lead

ership to our business and motivation to our employ

ees, but management also involves planning, organiz

ing and coordinating, controlling and monitoring

These activities are always in

line with our mission and

the long-term and short-term goals and objectives o

our business."

3 Orient

ew Employees

"Employees are oriented on com

puter and one-on-one through staff

training. The orientation period is 3

6

weeks and this

is

a probationary

period. During this time the new employees must learn

what their position requires and the expectations of the

company. By combining both types of training, we

believe employees have the best training and are wel

prepared to work independently after the 3-6 weeks

orientation."

4

Explain the concept

ofstaff

motivation

"Getting people excited about their work, glvmg

employees a sense of pride, and rewarding for a job

well done

may be

methods of motivating staff. The

key to any morale builder, or motivator

is

to find ou

what

is

important to those who need motivation.

money seems to

be

the primary motivator, then con

tests, bonuses or commissions may serve the purpose

In

all instances, bUilding pride and making work re

warding should have a positive effect."

5

evelop

a

positive working environment

"The working environment may include the actua

physical conditions, such

as

cleanliness, good lighting

appropriate facilities, and well-maintained equipment

Additionally, the working environment includes the

attitudes of the management and employees.

When management

is

honest and operates unde

the 'open-door' policy, where employees can voice

opinions and give suggestions, the environment may

be a positive place to work."

6

escribe the nature of

risk

management

"Risk management

is

necessary to provide protec

tion from devastating results from economic, natura

and human risks. Some risks may

be

prevente

through training competent employees and maintainin

safe and secure working environments. Some risk ma

be transferred through the purchase of insurance.

Ultimately some risk must

be

assumed and not a

risk

is

avoidable. It

is

safer and more responsible to

be

proactive instead of reactive."

1

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Performance Indicator Ideas

&

Answers


Instruc tional Area: INFORMATION

&

MARKETING INFORMATION MANAGEMENT

1 escribe the nature of business records

(INFORMATION MGMT)

"Business records are extremely important and

are referenced not only at year end for the purpose of

the

IRS

and taxes, but also

by

management

on

a regu

lar basis to control productivity and to predict trends

in

purchasing and expansion plans. Balance sheets,

income statements, cashflow projections, daily sales,

and inventory data are conveniently stored on com

puter with secure access from a variety of locations.

This data may be used to create multiple sources of

information."

2

Identify ways that

technology

impacts

business

(INFORMATION MGMT)

Ms.

Smith, I'm please to report that productivity

has been greatly improved with the advances in tech

nology over the last 10 years. Our company is able to

record information related to customers, sales, and

inventory as it occurs, instead of data entry being nec

essary at day or month end. Expenses related to data

entry and outsourcing related jobs has been reduced

by

25%. Inventory

is

totally automated now, which also

helps determine purchasing levels. The information

that

is at our fingertips about consumers

is

also benefi

cial because we are able to meet the demand of our

customers more efficiently. We are

in

a position to

expand into new geographical locations due to our

advances."

3

Explain the nature of marketing-information

management (MARKETING INFO MANAGEMENT)

"Marketing-information management is a fancy term

for managing data and information about customer

attitudes and development of new products. Marketing

research can be done

on

a formal or informal basis

within small and large companies. For large busi

nesses that utilize formal research, the procedures

and outcomes must be organized

so

the business can

make sense of the findings and benefit from the re

search.

Data collected may be secondary or primary and

may come from sources within or outside the busi

ness. Methods of collecting new information include

surveys, observation, and experiments. Once new

information and data are obtained, it must be analyzed

for the business to use. For this reason, management

of the data is necessary."

4 Explain the concept

of

market and market

Identification

(MARKETING INFO MANAGEMENT)

"The market is the customer group identified for a

product, such

as

teens or women. Specifically identify

ing customer demographics and information about

preferences and lifestyles enables our company to

better meet the needs of our customers. If we tried to

sell to everyone, we really wouldn't be able to sell to

many. For each unique product, market identification

will optimize promotional efforts, sales, & profit."

12


&

Answers


Instructiona l Area: PROMOTION

1

Explain the role of promotion

"Promotion

is

among several functions catego

rized under the umbrella of marketing and it is known

as one of the 4 P's of the marketing mix. Its role may

be to create awareness, persuade, remind, or en

hance our image by communicating a message to a

specific group

in

the public/community, among our

customers, our employees. or our stockholders."

2 Identify the elements

of

the

promotional

mix

"Advertising creates public awareness of our com

pany. Sales promotion compliments and reinforces

advertising efforts and stimulates sales. Publicity builds

an image

in

the public's mind about our company. The

only personal form of promotion, personal selling has

the goal o f finalizing 'the sale.'

All four forms of promotion should be coordinated

to achieve our company's goals. For example, ou

company name and the services we offer are adver

tised in local media and we also sponsor events coor

dinated by the local chamber of commerce to promote

our interest

in

our community and enhance our im

age

.

3

Explain the nature

of

promotional plan

"A promotional plan is designed to coordinate al

forms of a company's promotion. For example, sales

promotion should compliment advertising, and loca

advertising should also correspond to national adver

tising.

The plan provides direction and goals for a busi

ness, but also gives flexibility to unplanned opportuni

ties. Depending

on

the ownership and size of a bus

ness, the promotional plan may be formally written out

or be

an

informal plan

in

the mind of the

owner.

4 escribe the use of business ethics

in

promotion

"Truth

in

advertising" is policed

by

the Federa

Trade Commission. Advertising must be truthful and

non-deceptive; advertisers must have evidence to bac

up their claims; and advertisements cannot be unfair.

An advertisement is considered deceptive if it is like

to mislead consumers acting reasonably under th

circumstances; and is "material" - which means, impo

tant to a consumer's decision to buy the product."

"Our company takes strict measures to ensure a

content and messages delivered through promotion

activities are ethical and keeps us off the FTC's blac

list.

5 escribe considerations in using databases in

advertising

"Our business maintains a database for each

our customer groups. This enables

us to

better pr

mote information to each individual based

on

the

product needs and wants. For example, we can easi

send holiday greeting cards to customers who use o

tax services and customers who are payroll client

Zip code information also saves money

on

mailing

due to bulk rates."

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Instructional Area: MARKETING & PRICING

1 Explain marketing

and its

importance

in

global economy

(MARKETING)

Marketing

is

the total sum of activities

to

provide

goods

and

services to meet the wants

and

needs

o

customers. Many companies have products with

global appeal and will benefit by expanding interna

tionally. The marketing concept directs the company

to

identify the target market and plan all details of the

expansion around the needs

and

wants of the new

prospective customer group. Legal, cultural, and

technological issues all must be taken into every

global marketing decision.

2 Describe marketing functions and related

activities

(MARKETING)

Functions

o

marketing include distribution, mar

keting-information management, pricing, promotion,

product/service management, and selling. Each func

tion has specific objectives

in

the overall mission of our

company to serve our customers. Making and main

taining a profit by maximizing sales and reducing ex

penses

is

the ultimate goal. Any activity which does

not qualify

as

production, but relates to the satisfaction

of customers and the profitability of the company may

be

categorized as a marketing activity.

3

Explain the nature and scope

o

the

pricing

function

(PRICING)

Pricing involves the value of money placed

on

a

product or service. The function of pricing involves the

strategies used to set prices of products, pricing com

putations such

as

discount and markups, and the over

all relationship between pricing and the company's

profitability.

4

Explain legal considerations for pricing

(PRICING)

There are both federal and state laws protecting

consumers from unfair pricing practices. Price fixing is

agreement between competitors to fix a price and

eliminate competition. Price discrimination is unfair

price differences between similar customers. Manu

facturers are limited

on

their requirements of retailers

to charge certain prices through the Consumer Goods

Pricing Act. Unit pricing has been required in some

states to make it easier for consumers

to

compare

consistent prices of products priced

in

different quanti

ties. These considerations are all based

on

fairness

for the consumer, and ethical considerations are the

basis of each law.

5

Explain factors affecting

pricing (PRICING)

Pricing depends on the objectives of price as it

relates to the businesses profitability. The image of

the business, supply and demand, the stage of the

product life cycle, and the expense related to the

product are all considerations.

14



Instructional Area: BUSINESS LAW

1

Describe legal issues affecting businesses

Litigation attorneys serve as defense counsel

i

litigations, arbitrations, disciplinary proceedings an

enforcement proceedings involving accounting firms

representing both individual accountants and account

ing

firms. Accounting firms may

be

advised on regula

tory matters, including state accounting laws and regu

lations, PCAOB regulations and proceedings, and se

curities law matters. Corporate attorneys represen

accounting firms

on

internal structuring, joint venture

and alliances, acquisitions, and withdrawals and disso

lutions. Employment attorneys advise accounting firm

on

employment contracts, severance arrangements

office policies and procedures and employment prac

tices liability issues.

2

Describe the nature o egallv

binding

contracts

Protecting confidential financial information and

database rights require confidential contracts with

many businesses. Our firm depends on legally binding

contracts

to

ensure fairness in a variety of operation

and business transactions and a contract formalize

the expectations of each party. With a legal contract

each party

is

accountable to those expectations o

must answer

to

a court of law.

3

Explain types

o

business ownership

Ownership

in

business includes single proprietor

ship, two

or

more forming a partnership,

or

a corpo

rately owned company. Many entrepreneurs are inde

pendent and are sole proprietors. They may often form

an

LLC for legal protection and taxation benefits. Cor

porations are owned by 1000's of stockholders.

4.Explain the nature

o

personnel regulations

Companies with many employees are wise

t

have someone with knowledge regarding the divers

issues surrounding personnel. Today personnel regu

lations are broad ranging from payroll, taxes, an

benefits, to insurance and non-discrimination issues

The RS

is

the source of the US employer responsibil

ties regarding taxes and the EECO

is

the regulatin

authority of many unfair and discriminatory practices

We have clear policies

in

place and make those clea

to

all employees upon hire.

For more info go to:

ADA-American s

with Disabilities

Act

usdoj.govlcrtladal

EEOC-Equal

Employment Opportun ity Commission

eeoc.gov

5

Explain the nature o workplace regulations

(including OSHA ADA)

Our company works to assure the safety, health

and equality of our employees by following the stan

dards set by OSHA and the ADA. Fortunately we hav

very few accidents in our accounting offices, but man

of our clients establish funds to eliminate workplac

dangers and reward safety practices that help the

employees stay safe and healthy

on

the job.

For more info go to:

OSHA-Occupational Safety and Hazards Admin. osha.gov

ADA-American s with Disabilities Act usdoj.govlcrtladal

5


7/11



nstructional

Area:

PRODUCTISERVICE MANAGEMENT

1

Explain the nature

and

scope of product/service

management function

"Product management includes developing a

product plan, which includes defining goals and objec

tives, specifying tasks or how goals will

be

achieved,

what resources are needed, and associating budgets

and timelines for completion. It also includes imple

menting the plan, along with careful controls to stay on

the "critical path", that is, to ensure the plan is being

managed according to plan. Product management

usually follows major phases with various titles for

these phases, including feasibility study, product plan

ning, implementation, evaluation and support!

maintenance."

2 dentify the

impact

of product life cycles on

marketing

decisions

"During the introductory phase of a product's life

cycle compared to the decline phase of a product,

marketing decisions will vary greatly regarding price

and the money spent on promotions of all types includ

ing placement

in

stores and advertising.

With products that have a very short life cycle,

introductory pricing to the close out sale prices may

be

mandated by the seasons, by customer's demand, and

advances in technology. The customers demand for

the items will direct the decision related to future pur

chasing. During the growth phase of a product, mar

keting may determine additional styles, colors, and

features should be added to a product to maximize its

profitability. Production will then respond to the request

of

marketing and management and provide the addi

tional products."

3 dentify product opportunities

"We constantly look for new opportunities to add

to our servicelproduct mix. Ideas can come from many

sources, for example: Complaints from current custom

ers, requests for additional products, modifications to

current products, and suggestions from employees,

customers, suppliers, etc.

Many buyers travel to regional and national

'buyer's markets' to see new lines

of

merchandise and

determine what will compliment the existing product

line. Having good rapport with sales reps may provide

helpful information about new items. Some companies

subscribe to the on-line research sites which special

ize

in

predicting trends."

4 Explain warranties

and

guarantees

"Warranties are an important element

of

product

planning. This extended feature of a product focuses

on

the customer and it may be the reason a customer

decides to purchase a particular product over another.

The term guarantee is used in advertising messages,

but the term warranty is the actual document outlining

the companies promise to the customer

on

behalf of

the product."

5

Explain the concept of the product mix

"Goods and services make up the product mix of

a company. The product width is the scope

of

differ

ent lines

of

merchandise and product depth is the

variety within each line

of

merchandise. "

6



nstructional

Area: OPERATIONS

1

Explain the nature and scope of purchasing

"My responsibility

as

a purchasing agent is to ro

tinely inventory supplies and approve requisitions fro

all departments. Buying basic supplies in bulk saves

great deal

of

money due to quantity discounts an

shipping expenses. For larger equipment needs, I u

comparison shopping or get bids from numerous su

pliers. The nature of purchasing in operations primar

involves routine straight re-buys and modified re-buys

2

Describe crucial elements of

a

quality culture

"The working culture may include the actu

physical conditions, such as cleanliness, good lightin

appropriate facilities, and well-maintained equipmen

Additionally, the working culture includes the attitud

of

the management and employees. This all impac

the workflow of productivity. Specialization and cu

tomized training, as well as procedures specially d

veloped for each department within a business m

enhance work productivity. The overall environme

will have a major influence on the quality

of

the wor

ing culture.

When management is organized, honest, an

operates under the 'open-door' policy, where emplo

ees can voice opinions and give suggestions, the cu

ture will also be affected in a positive way."

3 Explain the employee s role in expense control

"Management believes that the goal of controlli

expenses

is

a responsibility to be undertaken by eve

one. Employees must understand their actions have

direct impact on the electricity bill, telephone bill, a

overall productivity. When they have this worki

knowledge, they become part

of

the solution, not p

of

the problem.

Small actions such as turning off appropriate ligh

ing, not making long distance phone calls on compa

phones, and conserving water all help to keep e

penses down. Additional actions such as watching f

shoplifting, being aware

of

labor costs, and looking

ways to save the company money all contribute

expense controL"

4

Explain routine security precautions

I

"Safety precautions include using security perso

nel or electronic surveillance, planning effective sto

layouts, screening potential employees, posting safe

J

procedures and having regularly scheduled emplo

ees' meetings covering relevant security & safety to

ics."

5 Explain the nature of overhead/operating

costs

"Operating expenses include both variable a

fixed expenses of operating a business. Fixed, or ove

head expenses, include insurance, rent, fixed salarie

depreciation, and office equipment. Variable expens

include advertising, supplies, telephone, and util

expenses, all fluctuating monthly. Products ordered f

resale are not considered operating expenses, but a

considered 'cost

of goods sold.'"

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8/11


&

Answers


nstructional

Area: COMMUNICATIONS &

PROFESSIONAL DEVELOPMENT

1

Explain the nature effective written

communications (COMMUNICATION)

"Being able to send a clear message n written

form is important to every position within our business.

Written communication needs to be organized so it

clearly relays the message and leaves very little

chance for confusion. The message must have a clear

subject, with additional information communicating the

necessary details. Dates, times, places, and the clear

purpose of the message are usually important informa

tion to double check. The sender's contact information

must be clearly identified so the receiver has the op

portunity to respond or make necessary contact. The

nature of effective written communications can not be

underestimated."

2

Explain the nature

staff

communication (COM)

"Two-way communication between management

and employees is a characteristic

of

an effective com

pany. Employees who feel they are important and

have the opportunity to speak with their supervisors

will contribute more effectively to a company than

those who question their right to communicate con

cerns. Additionally, employees often have ideas that

may enhance the operations of the business. Manage

ment will obviously have expectations necessary for

the employees to be aware of and this communication

may occur n the form of emails, memos, one-on-one

talks, or group meetings. Ideally, thought should go

into making the message clear and effective."

3 Explain employment opportunities in business

(PROFESSIONAL DEVELOPMENT)

"Employment opportunities within our company

are very similar to those

n

other businesses. We offer

entry-level jobs which provide the chance to gain ex

perience with our company and our industry. With

experience, lateral moves within the company may

occur to similar paying jobs, or upward movement is

possible to management level jobs. Some of the posi

tions available with our company include receptionist,

bookkeeping and payroll positions, store manager, and

human resources manager."

4

Identify skills needed to enhance career

progression

(PROFESSIONAL DEVELOPMENT)

"Personal drive and motivation combined with a

passion in our industry will enhance opportunities for

someone serious about advancement. Negotiation

and communication skills, and knowledge of trends n

our industry will also improve your chances for the

position you are hoping for."

5 Use networking technigues

for

professional

growth (PROFESSIONAL DEVELOPMENT)

"Numerous industry associations, both domestic

and international, offer conferences and on-line com

munities within our industry to network. This provides

information related directly to our careers. Local net

working through the chamber of commerce and clubs

benefit our local relationships and success."

8


&

Answers

AccounnngApplicanons

nstructional

Area:

FINANCIAL ANALYSIS

1 Explain the time value money

"The time value

of

money is based on the prem

ise that receiving a certain amount of money toda

rather than the same amount in the future, is mo

attractive. Money received today s more valuab

than money received n the future by the amount

interest the money can earn. If $90 today will accum

late to $100 a year from now, then the present valu

of

$100 to be received one year from now is $90."

2

Explain the purpose and importance credit

"Credit gives the customer more purchasi

power. Credit falls under the category of possessi

utility. It is a convenience to the customer and n ma

instances, enables a customer to buy a product at

time of need that could not be obtained any other w

than with credit. Businesses also rely on credit for da

operations."

3 iscuss considerations when selecting

financial

service

provider

"Mr. Smith, the selection of the best financial se

vice provider requires some research and probing

well as personal intuition. I would recommend aski

about the institution's or personal advisor's credentia

how many years experience the provider has, do

this provider specialize n offering services which me

your personal needs, what are the fees for service

and what is the track record of this provider. Then a

yourself

if

you would feel comfortable sharing con

dential information with this institution or person."

4

escribe the

concept

insurance

"Ideally, insurance provides a company or individu

peace of mind and the financial freedom from t

devastation of unforeseen occurrences resulting fro

natural, human, or economic disasters. Some ris

may be transferred n the form of insurance. Risk c

not be eliminated, but insurance can save a busine

financially in the event of something such as

tornado, or on-site accident that causes a lawsuit."

5 escribe the nature budgets

"A budget provides allowances for personal

business spending based on money available. The

allowances are specific amounts to be spent for va

ous necessities, wants, and savings plans. A budg

can help people

meet

savings goals and business

meet profit goals."

6 Protect against identify theft

"Ms. Wilson, although identify theft is

on

the ri

many people don't realize the basics of protect

against this crime wave. You must shred or bu

papers with credit card or bank account numbe

Social Security numbers, etc.; don't put your Soc

Security number

on

anything, including checks, unle

it is legally required. If the license bureau routin

uses your Social Security number, check with the DM

to see if they offer another option. Don't carry num

ous credit cards, and check your credit report once

twice a year to make sure it doesn't have accounts y

don't know about. I hope these tips help you secu

your identify because you are certainly one-of-a-kind

9


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i

Definitions

i AccountingApplications

_ _ _ _ _ _ _ _ _ _ _ _ _._._

ACCOUNTING is primarily a system

of

measurement

and reporting of economic events based upon the ac

counting equation for the purpose of decision making.

Generally, when someone says "accounting" they are

referring to the department, activity or individuals in

volved

in

theapplication

of

theaccountingequation.

ACCOUNTING CONCEPTS aretheassumptionsunder

lying the preparation of financial statements, i.e., the

basic assumptions of going concern, accruals, consis

tencyandprudence.

ACCRUAL BA SIS OF ACCOUNTING is wherein reve

nue and expenses are recorded

in

the period

in

which

theyareearnedorincurredregardlessof whethercashis

received ordisbursed

in

thatperiod.Thisistheaccount

ingbasisthatgenerallyis requiredto

be used in orderto

conform to generally accepted accounting principles

(GAAP) in preparing financial statements for external

users.

CASH BASIS OF A CCOUNTING

istheaccountingbasis

in

which revenueandexpensesarerecorded

in

the pe

riod theyareactually receivedorexpended

in

cash. Use

of the cash basis generally is not considered tobe

in

conformitywith generally accepted accountingprinciples

(GAAP)andisthereforeusedonlyinselectedsituations,

such as forvery small businessesand (whenpermitted)

forincometaxreporting. SeealsoAccrual Basis.

AMORTIZATION 1

is thegradualreductiono fadebtby

meansof equalperiodicpaymentssufficienttomeetcur

rent interestand liquidatethedebtatmaturity.Whenthe

debtinvolves real property,oftenthe periodicpayments

include asum sufficient to pay taxes and hazard insur

anceon theproperty.

2 is

theprocessofspreading the

cost of an intangibleassetover theexpected useful life

of

theasset. Forexample:acompanypays$100,000 for

apatent, they amortize the costover the16 yearuseful

life of the patent. 3 the deductionof capital expenses

overaspecificperiod

of

time.Similartodepreciation,itis

amethodof measuringthe"consumption"of thevalueof

long-termassetslikeequipmentorbuildings.

HEDGE

in

securities,

is

atransactionthatreducesthe

riskof an investment.

HEDGE FUND

is

aspecial typeo finvestmentfundwith

fewer restrictions on the typesof investments it can

make. Of note is a hedgefund's ability to sell short.In

exchange for the ability to use moreaggressive strate

gies, hedgefundsaremoreexclusive,i.e., fewerpeople,

usuallyonly thewealthy, are allowed to invest

in

hedge

funds.

HEDGING is strategy focused upon reducing exposure

to risk

of

loss resulting from fluctuations in exchange

rates, commodity prices, interest rates etc. Hedging

in

securities is taking two positions that will offset each

otherifpriceschange,therebylimitingfinancialrisk.

BYLAWS aretheprovisions

of

corporatepolicies.

2

Definitions


_._._._._._._._._._._._._._._._._._._._.-.

ALTMAN Z-SCORE reliablypredictswhetherornota

companyislikelytoenterintobankruptcywithinone

twoyears:

IftheZ-Scoreis3.0orabove- bankruptcy

is

not

likely.

IftheZ-Scoreis1.8orless- bankruptcyislikely.

AZ-Scorebetween1.8and3.0isthegrayarea,

ahighdegreeof cautionshouldbeused.

Probabilities

of

bankruptcy within the above ranges

95% forone yearand 70% within two years.AZ-S

betweenthetwo is thegrayarea. Obviouslya highe

Score is desirable. It is best to assess each indivi

company's Z-Score against that of the industry. In

marginindustries

it is

possibleforZ-Scores to fall be

the above. In such cases a trendcomparison tothe

dustry over consecutive time periods may be a b

indicator.ItshouldberememberedthataZ-Scoreis

as valid as the data from which it was derived i.e.

company has altered orfalsified their financial reco

books, aZ-Scorederivedfrom those "cooked book

oflesseruse.

NASDAQ is a computerized system established by

NASD to facilitate trading by providing broker/dea

withcurrentbidandaskpricequotesonover-the-cou

stocksand somelisted stocks. UnliketheAmexand

NYSE, theNASDAQ (oncean acronymforthe Nati

Association

of

securities Dealers Automated Quota

system)doesnothaveaphysicaltradingfloorthatb

together buyers and sellers. Instead, all tradingon

NASDAQexchangeis doneoveranetworkof compu

and telephones. Also, the NASDAQ does not em

market specialists to buy unfilledorders like the N

does. TheNASDAQ beganwhen brokers started i

mallytradingviatelephone;thenetworkwaslaterfor

ized and linked by computer

in theearly 1970s.In 1

the parent company of the NASDAQ purchased

Amex, although the twocontinue to operatesepara

Orders for stock are sent out electronically on

NASDAQ, where market makers list their buy and

prices. Once a price

is

agreed upon, the transactio

executedelectronically.

BREAK-EVEN ANALYSIS isan analysismethoduse

todeterminethenumberof jobsorproductsthatneed

besoldtoreachabreak-evenpoint

in

abusiness.

BREAK-EVEN EQUATION istheequationthatdeter

minesBREAK-EVENPOINT.Letp

=

unitsellingprice

=unitvariablecost,FC=totalfixedcosts,x=sales

in

units.Theequation:px=vx+ FC.

BREAK-EVEN POINT is thevolumepointatwhich r

nues and costs are equal; a combination

of

sales

coststhatwillyieldanoprofit/nolossoperation.

WHOLLY OWNED SUBSIDIARY is an entity wh

parent company owns virtually 100%

of

its comm

stock.

2


10/11

,_._._.-

_ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _

,

Industry News & Information

Industry News

&

Information

ccounting pplications :

ccounting pplications

I.

_

_ _ _ _

_ _

_ _

_ _ _ _ _ _

_ _

_ _

_ . .. ;

The Big 4 or the Big Four)

A group

of

international accountancy and profes

sional services firms that handle the vast majority of

audits for publicly traded corporations. Member firms of

the Big Four

can

trace their history back to Europe.

In

order of revenue and headcount as

of

2005, the Big

4 are:

PriceWaterhouse Coopers $20.3bn +17%

Deloitte $18.2bn +12%

Ernst

&

Young $16.9bn +16%

KPMG $15.7bn +16%

The previous listing once included Arthur Ander

sen, the smallest firm of The Big Five. This firm was

convicted of obstruction

of

justice

in

the wake of the

2001

Enron scandal. This conviction effectively ended

the firm's ability

to

audit public companies.

On

May 31,

2005, the United States Supreme Court unanimously

overturned the conviction.

Arthur Andersen, was indicted for falsifying the

financial statements of Enron, covering up millions of

dollars

in

losses

in

the

2001

Enron scandal. The result

ing conviction, since overturned, has effectively meant

the end of the line for Arthur Andersen. Most of its

country practices around the world have sold to mem

bers of what

is

now the Big Four, notably Ernst

&

Young and Deloitte & Touche

in

the

UK.

July

10, 200 6 (SmartPro s) -- Following a recent in

crease

in

scam emails, the Internal Revenue Service

reminded taxpayers to

be

on the lookout for bogus

emails claiming to be from the tax agency.

The IRS saw an increase

in

complaints

in

recent

weeks about these emails, which are designed to trick

the recipients into disclosing personal and financial

information that could be used to steal the recipients'

identity and financial assets.

The IRS has seen a recent increase

in

these

scams. Since November, 99 different scams have

been identified, with 20 of those coming

in

June - the

most since 40 were identified

in

March during the

height of the filing season.

The current scams claim to come from the IRS,

tell recipients that they are due a federal tax refund,

and direct them to a Web site that appears to be a

genuine IRS site. The bogus sites contain forms or

interactive Web pages similar to IRS forms or Web

pages but which have been modified

to

request de

tailed personal and financial information from the email

recipients. In

addition, email addresses ending with

.edu - involving users

in

the education community

- currently seem

to be

heavily targeted.

The IRS does not send out unsolicited

em

ails or

ask for detailed personal information via email. Addi

tionally, the IRS never asks people for the

PIN

num

bers, passwords or similar secret access information

for their credit card, bank or other financial accounts.

Tricking consumers into disclosing their personal

and

financial information, such as secret access data

or credit card or bank account numbers, is fraudulent

activity which

can

result

in

identity theft. Such schemes

perpetrated through the Internet are called phishing

for information. Source: www.pro2net.com

Defense Finance and

Accounting

Service

It's not one of the

Big

Four, but it

is

big. The Defen

Finance and Accounting Service

OF

AS)

is

essentia

the payroll and accounting department for the Depa

ment of Defense. Annually, the DFAS pays nearly

million military and civilian personnel, retirees, a

annuitants; processes more than 11 million contrac

invoices; and makes more than 7 million travel pa

ments, disbursing about $350 billion, total. Additiona

it handles about 100 million accounting transactio

and manages some $200 billion

in

military retireme

trust funds. DFAS is financed by its customers rath

than through direct appropriations. It operates throu

26 locations worldwide.

Occupational Outlook Handbook

Bookkeeping, accounting, and auditing clerks are

organization's financial recordkeepers. They update a

maintain one or more accounting records, including tho

which tabulate expenditures, receipts, accounts payable a

receivable, and profit and loss. They represent a wide ran

of skills

and

knowledge from full-charge bookkeepers w

can maintain

an

entire company's books to accounting cle

who handle specific accounts. All of these clerks make n

merous computations each day and increasingly must

comfortable using computers to calculate and record data.

In small establishments, bookkeeping clerks handle

financial transactions and recordkeeping. They record

transactions, post debits and credits, produce financial sta

ments, and prepare reports and summaries for supervis

and managers. Bookkeepers also prepare bank deposits

compiling data from cashiers, verifying and balancing

ceipts, and sending cash, checks, or other forms of paym

to the bank. They also may handle payroll, make purchase

prepare invoices, and keep track of overdue accounts.

In

large offices and accounting departments,

ccount

clerks have more specialized tasks. Their titles, such as

counts payable clerk or accounts receivable clerk, often

flect the type of accounting they do.

In

addition, their resp

sibilities vary

by

level of experience. Entry-level account

clerks post details of transactions, total accounts, and co

pute interest charges. They also may monitor loans

and

counts to ensure that payments are up to date.

Most bookkeeping, accounting, and auditing clerks

required to have a high school degree at a minimum. Ho

ever, having some college is increasingly important

and

associate degree in business or accounting is required

some positions. Although a college degree

is

rarely requir

graduates may accept bookkeeping, accounting,

and audit

clerk positions to get into a particular company or to enter t

accounting or finance field with the hope of eventually be

promoted to professional or managerial positions.

Many bookkeeping, accounting, and auditing clerks w

regular business hours and a standard 40-hour week. A su

stantial number work just part time. Full-time and part-ti

clerks may work some evenings and weekends. Bookke

ing, accounting, and auditing clerks may work longer hours

meet deadlines at the end of the fiscal year, during tax tim

or when monthly or yearly accounting audits are performe

Those who work in hotels, restaurants, and stores may pu

overtime during peak holiday and vacation seasons.

Once hired, bookkeeping, accounting, and audit

clerks usually receive on-the-job training. Under the guidan

of a supervisor, new employees learn company procedur

Some formal classroom training also may be necessa

Bookkeeping, accounting, and auditing clerks must be ca

ful,

orderly, and detail-oriented in order to avoid making err

and

to recognize errors made by others. These workers a

should be discreet and trustworthy, because they frequen

come in contact with confidential material. www.bls.gov

22

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11/11

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.

_ _ _ _ -

:7 :: i:

! I

Industry News Information

i


:

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~

Professional

Trade

Associations

Here's just a few of the many professional trade associa

tions you can research. As your judge, I'll be impressed

if you refer to the trends, legislative issues, or networking

opportunities that are supported or offered through a

relevant trade association! Simply type accounting indus

rY

in

your internet search engine and begin researching.

The

American Institute

of

Certified

Public

Accountants

is the national, professional

organization for all Certified

Public Accountants. Its mission is to provide members

with the resources, information, and leadership that en

able them to provide valuable services in the highest

professional manner to benefit the public as well as em

ployers and clients.

n

fulfilling its mission, the AICPA works with state CPA

organizations and gives priority to those areas where

public reliance on CPA skills is most significant

The

American Account

ing Association promotes

worldwide excellence

in

accounting education, re

search and practice. Founded

in

1916 as the American

Association

of

University Instructors in Accounting, its

present name was adopted in 1936. The Association is a

voluntary organization

of

persons interested in account

ing education and research.

ational Socle!

of

Accountants

NSA and its affiliates

represent more than

30,000 independent

practitioners who provide

accounting, tax, auditing,

financial and estate planning, and management ser

vices to 19 million individuals and businesses. Most

members are sole practitioners or partners in small- to

medium-size accounting firms. NSA protects its mem

bers' right to practice and protects the public by requiring

its members to adhere to a strict Code

of

Ethics

GASS: The mission

of

the ~

Governmental Accounting

r ~ ~ ~

Standards Board is to Go,o,nmon '

Aounting S.onda ds

Buard

establish and improve

standards

of

state and local governmental accounting

and financial reporting that will result

in

useful informa

tion for users

of

financial reports and guide and educate

the public, including issuers, auditors, and users

of

those

financial reports.

24

The last

section of the

booklet s a review of

general

marketing concepts.

Graphic organizers from

"The Marketing

Web"-"

are included,

representing concepts of

Marketing &

Business.

t-

Marketing Info

An effective method of remembering vocab

lary words is to understand how they are

related to one another. Trying to memorize

was always difficult for me, but I could

remember terms if they made sense to me.

The graphic organizers help make sense o

a large amount of information, and they

make it easy to see several concepts all at

once.

If you don't have "The Marketing Web"

your classroom, teach yourself this metho

of understanding marketing. It is much easi

to compete in a marketing event if you kno

how every aspect of marketing is related.

Along with the graphic organizers there's

bit of related, but brief information. Th

booklet is only designed to be a review to

and give you some ideas for competition. A

your judge, I strongly recommend that yo

turn to additional resources to prepare f

competition.

Good Luck I hope to

see you at Nationals!

25

Accounting Application Management

Documents

Transcript of Accounting Application Management