What the Course Entails and Exam Details

The FBLA Accounting events measure a student's knowledge across a broad spectrum of accounting concepts.

• Accounting I: This level covers introductory concepts, focusing heavily on the accounting cycle for a sole proprietorship service or merchandising business. Key topics include understanding assets, liabilities, and equity; analyzing business transactions; journalizing and posting to a general ledger; preparing trial balances; making adjustments; creating financial statements (Income Statement, Statement of Owner’s Equity, Balance Sheet); and performing closing entries. It also includes fundamental concepts related to cash controls, payroll, and banking procedures.

• Accounting II: Building significantly upon Accounting I, this level introduces more complex accounting systems and entities. Topics include partnership accounting (formation and dissolution); corporate accounting (issuing stock, dividends, retained earnings); accounting for long-term liabilities (bonds); accounting for uncollectible accounts; inventory valuation methods (FIFO, LIFO); plant assets and depreciation; and interpreting sophisticated financial statements using ratio analysis. Departmentalized accounting and basic cost accounting concepts may also be covered.

What to Expect in the Final Exam

The FBLA Accounting competitive events typically structure their exams around objective testing.

• Format: The primary component is an objective test, consisting of multiple-choice questions. These questions evaluate both theoretical knowledge and practical application of accounting principles.

• Time Limit: Students generally have a strict time limit, typically 60 minutes, to complete the objective test.

• Scoring: Winners are determined based on the highest scores on the objective test. In the event of a tie, the completion time of the exam is often used as the tie-breaker.

• Additional Components: At higher levels of competition (State and National), the Accounting II event might include a production problem component, where students are required to solve accounting problems manually or using spreadsheet software, demonstrating their practical application skills. Simple, non-programmable calculators are usually permitted.

How to Study and Exam Centers

Preparation is key to succeeding in these competitive events.

• Study Strategies: Students should thoroughly review standard high school accounting textbooks. Utilizing past FBLA sample tests and study guides is crucial for understanding the question format and depth. Practice solving problems efficiently, as speed and accuracy are essential during the timed exam. Review the official FBLA competitive event guidelines and rating sheets to understand the specific competencies tested. Consider forming study groups with classmates or seeking guidance from your FBLA chapter adviser or an accounting teacher.

• Exam Centers: The exams take place in several stages.

• Local/Regional Competitions: Initial rounds are often held locally at participating high schools or designated regional testing sites.

• State Leadership Conference (SLC): Students who qualify from regional events compete at their state's annual SLC, usually held at a large conference center or hotel.

• National Leadership Conference (NLC): Top performers from the SLC advance to the National Leadership Conference, where they compete against students from across the country.

Job Opportunities from the Course

A strong performance in FBLA Accounting competitive events demonstrates a solid foundation in business finance, making students attractive candidates for various entry-level positions and future career paths.

• Accounting Clerk

• Bookkeeper

• Payroll Clerk

• Accounts Payable/Receivable Specialist

• Tax Preparer (entry-level)

• Junior Accountant (with additional education)

• Corporate Accountant

• Financial Analyst

• Auditor