STANDARD COMPETENCIES:

 

         A.      Explain key accounting and bookkeeping concepts and terms.  (I)

         B.      Demonstrate an understanding of basic bookkeeping and various forms and records that may be involved in an adequate recordkeeping system.  (II)

         C.      Prepare simple financial statements for a small business.  (III)

         D.      Analyze the financial position of a business through basic financial statement analysis.  (IV)

         E.      Demonstrate a basic understanding of the various IRS rules, forms and deadlines that may affect small businesses.  (V)

 TOPICAL OUTLINE:

 

 I.      Basic accounting and bookkeeping concepts and terms

         A.      Revenue

         B.      Expenses, deductible and depreciable

         C.      Cash vs. accrual accounting

 II.     Basic recordkeeping procedures and forms

         A.      Single versus double-entry accounting

         B.      Chart of Accounts

         C.      Debit/credit basics

                 1.      Journal entries

                 2.      Posting to the general ledger

                 3.      Trial balance

         D.      Single-entry accounting -- revenue and expense journal

         E.      Other accounting records

                 1.      Petty cash records

                 2.      Inventory records

                 3.      Fixed asset records

                 4.      Customer/accounts receivable records

                 5.      Supplier/accounts payable records

                 6.      Payroll records

                 7.      Transportation, travel and entertainment records

                 8.      Business checking accounts

 III.    Financial statements

         A.      Balance sheet

         B.      Income statement (profit and loss statement)

         C.      Pro-forma cash flow statement

         D.      Comparing budget and actual cash flows

         E.      Three-year projections

         F.      Break-even analysis

 IV.     Financial statement analysis

         A.      Liquidity analysis

                 1.      Working capital

                 2.      Current ratio

                 3.      Quick ratio

         B.      Profitability analysis

                 1.      Gross profit percentage

                 2.      Operating profit percentage

                 3.      Net income percentage

         C.      Debt and investment analysis

                 1.      Debt/equity ratio

                 2.      Return on investment

         D.      Vertical and horizontal analysis

 V.      Basic income tax information

         A.      Schedule C, Schedule SE, Form 1040

         B.      Form 1065 and Schedule K-1

         C.      Form 1120S and 1120

         D.      Estimated taxes

         E.      Employer`s taxes

         F.      Calendar of due dates