Accounting Application Management
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Transcript of Accounting Application Management
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7/25/2019 Accounting Application Management
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7/25/2019 Accounting Application Management
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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.
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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
AccountingApplications
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."
Performance Indicator Ideas Answers
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."
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Performance Indicator Ideas
&
Answers
Accounting Applications
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
Performance Indicator Ideas
&
Answers
Accounting Applications
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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Performance Indicator Ideas & Answers
AccountingApplications
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
Performance Indicator Ideas & Answers
AccountingApplications
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
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Performance Indicator Ideas Answers
AccountingApplications
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
Performance Indicator Ideas Answers
AccountingApplications
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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Performance Indicator Ideas
&
Answers
AccountingApplications
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
Performance Indicator Ideas
&
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
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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
Accounting Applications
_._._._._._._._._._._._._._._._._._._._.-.
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.
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_ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _
,
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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_ _ _ _ -
:7 :: i:
! I
Industry News Information
i
AccountingApplications
:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~
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