Car Dealership Accounting (CPE Course)

CPE Credit: 4 hours

Course Type: Downloaded PDF materials with online test

Price (with PDF Textbook): $45

Course Description
The accounting for a car dealership is quite complicated, since there are many profit centers, fixed assets, and employees, not to mention the large vehicle inventory. In the Car Dealership Accounting course, we cover all aspects of a dealership’s accounting, including the underlying accounting system, profit center reporting, and the accounting for all types of sales, expenses, liabilities, and equity. Dealership-specific topics include floorplan interest, contracts in transit, and factory receivables. The course also covers how to account for payroll and the steps needed to close the books.

Author: Steven Bragg

Course Number: AC1163

Learning Objectives

  • Identify the normal account balances for the accounts used by a car dealership.

  • Specify how information is stored and posted in a dealership accounting system.

  • Identify the basis of accounting choices that a dealership can make.

  • Recall the structure of a car dealership’s financial statements.

  • Identify how contracts in transit are recorded by a dealership.

  • Recall the accounting used by the various profit centers of a dealership.

  • Specify how a dealership accounts for holdbacks.

  • Recall the accounting for new and used vehicles.

  • Identify the accounting for work-in-process labor.

  • Specify the accounting used for each of the expenses incurred by a dealership.

  • Recall the accounting for a floorplan loan.

  • Identify how a dealership would account for policy work.

  • Specify the choices available to account for bad debts.

  • Recall the underlying concepts used to account for fixed assets.

  • Identify the tax reporting structure used by governments to collect sales and use taxes.

  • Specify the journal entries needed to process payroll for a dealership.

Level: Overview

Instructional Method: QAS Self-Study

NASBA Category: Accounting

Prerequisites: None

Advance Preparation: None

Latest Review Date: November 2023

Program Registration Requirements: Click on "Purchase Course" near the top of this page to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.

Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.

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AccountingTools, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

The NASBA sponsor identification number for Accountingtools, Inc. is 115881.

AccountingTools is an IRS Approved Continuing Education Provider. We are compliant with the requirements for continuing education providers (as described in sections 10.6 and 10.9 of the Department of Treasury’s Circular No. 230 and in other IRS guidance, forms, and instructions). Our IRS Approved Continuing Education Provider number is 72821.