Topic: Financial records |
Business Education |
| Standard 1. Understands and applies basic procedures in the accounting cycle |
| | Level IV (Grade 9-12) |
| | | Benchmark 1. | Uses the fundamental accounting equation (i.e., assets = liabilities plus owner’s equity) |
| | | | Knowledge/skill statements |
| | | | | 1. | Uses the equation assets equals liabilities plus owner’s equity |
| | | Benchmark 2. | Understands the function of a balance sheet (i.e., a major report that lists the various asset, liability, and owner’s equity items) |
| | | | Knowledge/skill statements |
| | | | | 1. | Understands how a balance sheet functions as a major report that lists various assets |
| | | | | 2. | Understands how a balance sheet functions as a major report that lists various liabilities |
| | | | | 3. | Understands how a balance sheet functions as a major report that lists various equity items |
| | | Benchmark 4. | Understands the nature of the double-entry system |
| | | | Knowledge/skill statements |
| | | | | 1. | Understands the concept of the double-entry system |
| | | Benchmark 5. | Understands the concepts of accounts receivable and accounts payable |
| | | | Knowledge/skill statements |
| | | | | 1. | Understands the concept of accounts receivable |
| | | | | 2. | Understands the concept of accounts payable |
| | | Benchmark 6. | Understands the purpose of a journal and its relationship to the ledger |
| | | | Knowledge/skill statements |
| | | | | 1. | Understands the purpose of a journal |
| | | | | 2. | Understands the relationship between a journal and a ledger |
| Standard 2. Understands and applies payroll theories and procedures |
| | Level IV (Grade 9-12) |
| | | Benchmark 1. | Uses manual and computerized systems to prepare payroll records |
| | | | Knowledge/skill statements |
| | | | | 1. | Uses manual systems to prepare payroll records |
| | | | | 2. | Uses computerized systems to prepare payroll records |
| | | Benchmark 3. | Calculates deductions (e.g., federal income tax, Social Security tax, Medicare tax, state income tax) |
| | | | Knowledge/skill statements |
| | | | | 1. | Calculates deductions for federal income tax |
| | | | | 2. | Calculates deductions for Social Security tax |
| | | | | 3. | Calculates deductions for Medicare tax |
| | | | | 4. | Calculates deductions for state income tax |
| | | Benchmark 4. | Calculates employer’s payroll taxes (e.g., Social Security, Medicare, federal, unemployment, state unemployment) |
| | | | Knowledge/skill statements |
| | | | | 1. | Calculates employer’s payroll taxes for Social Security |
| | | | | 2. | Calculates employer’s payroll taxes for Medicare |
| | | | | 3. | Calculates employer’s payroll taxes for federal unemployment |
| | | | | 4. | Calculates employer’s payroll taxes for state unemployment |
| | | Benchmark 6. | Understands the relationship between gross pay, net pay, and deductions (i.e., net pay = gross pay less deductions) |
| | | | Knowledge/skill statements |
| | | | | 1. | Understands that net pay equals gross pay less deductions |
| Standard 3. Interprets and creates basic financial statements |
| | Level IV (Grade 9-12) |
| | | Benchmark 1. | Understands interrelationships of financial statements |
| | | | Knowledge/skill statements |
| | | | | 1. | Understands how financial statements relate to each other |
| | | Benchmark 2. | Prepares balance sheets (e.g., balance total assets with total liabilities plus net worth) |
| | | | Knowledge/skill statements |
| | | | | 1. | Prepares balance sheets by balancing total assets with total liabilities and adding net worth |
| | | Benchmark 3. | Calculates financial ratios (e.g., gross profit, net profit, equity, debt ratios; ratios of expenses to sales; rate of turnover of inventories) |
| | | | Knowledge/skill statements |
| | | | | 1. | Calculates gross profit |
| | | | | 2. | Calculates net profit |
| | | | | 3. | Calculates equity |
| | | | | 4. | Calculates debt ratios |
| | | | | 5. | Calculates ratios of expenses to sales |
| | | | | 6. | Calculates rate of turnover of inventories |
| | | Benchmark 4. | Prepares income statements (e.g., add gross sales/gross billings and cost of goods sold, determine gross profit on sales, deduct expenses, record net profit) |
| | | | Knowledge/skill statements |
| | | | | 1. | Prepares income statements by adding gross sales, gross billings, and cost of goods sold |
| | | | | 2. | Prepares income statements by deducting expenses |
| | | | | 3. | Prepares income statements by recording the net profits |
| | | Benchmark 5. | Prepares trial balances (i.e., summaries of ledger account balances used to check the arithmetical accuracy of ledgers) |
| | | | Knowledge/skill statements |
| | | | | 1. | Knows that trial balances are summaries of ledger account balances used to check the arithmetical accuracy of ledgers |
| | | | | 2. | Prepares trial balances by summarizing the ledger account balances |
| | | Benchmark 7. | Prepares and utilizes budgets (e.g., makes cost and revenue forecasts, track budget performance, makes appropriate adjustments) |
| | | | Knowledge/skill statements |
| | | | | 1. | Prepares budgets |
| | | | | 2. | Utilizes budgets |
| | | | | 3. | Knows how to make cost forecasts |
| | | | | 4. | Knows how to make revenue forecasts |
| | | | | 5. | Knows how to track budget performance |
| | | | | 6. | Knows how to make appropriate adjustments to a budget |
| Standard 4. Understands and uses accounting software and spreadsheets |
| | Level IV (Grade 9-12) |
| | | Benchmark 1. | Uses spreadsheet technology to prepare financial statements and reports (including charts and graphs) |
| | | | Knowledge/skill statements |
| | | | | 1. | Uses spreadsheet technology to prepare financial statements |
| | | | | 2. | Uses spreadsheet technology to prepare financial reports |
| | | | | 3. | Uses spreadsheet technology to prepare financial charts |
| | | | | 4. | Uses spreadsheet technology to prepare financial graphs |
| | | Benchmark 2. | Uses spreadsheets and databases to determine price, profit, cost, and break-even point |
| | | | Knowledge/skill statements |
| | | | | 1. | Uses spreadsheets to determine price |
| | | | | 2. | Uses spreadsheets to determine profit |
| | | | | 3. | Uses spreadsheets to determine cost |
| | | | | 4. | Uses spreadsheets to determine the break-even point |
| | | | | 5. | Uses databases to determine price |
| | | | | 6. | Uses databases to determine profit |
| | | | | 7. | Uses databases to determine cost |
| | | | | 8. | Uses databases to determine the break-even point |
| | | Benchmark 4. | Uses financial spreadsheets or accounting software for budget analysis and forecasting |
| | | | Knowledge/skill statements |
| | | | | 1. | Uses financial spreadsheets for budget analysis |
| | | | | 2. | Uses financial spreadsheets for budget forecasting |
| | | | | 3. | Uses accounting software for budget analysis |
| | | | | 4. | Uses accounting software for budget forecasting |
| | | Benchmark 6. | Understands the differences between manual and computerized accounting systems |
| | | | Knowledge/skill statements |
| | | | | 1. | Knows about manual accounting systems |
| | | | | 2. | Knows about computerized accounting systems |
| | | | | 3. | Knows differences between manual and computerized accounting systems |
| Standard 5. Understands the concepts of assets, liabilities, and owner’s equity |
| | Level IV (Grade 9-12) |
| | | Benchmark 1. | Uses common methods of computing depreciation (e.g., straight-line method, declining-balance method, sum-of-the-year-digits method) |
| | | | Knowledge/skill statements |
| | | | | 1. | Uses the straight-line method for computing depreciation |
| | | | | 2. | Uses the declining-balance method for computing depreciation |
| | | | | 3. | Uses the sum-of-the-year-digits method for computing depreciation |
| | | Benchmark 2. | Understands the concept of profit and the computation of the break-even point for a business (i.e., total fixed costs ÷ [selling price - variable cost per unit]) |
| | | | Knowledge/skill statements |
| | | | | 1. | Understands the concept of profit |
| | | | | 2. | Understands the computation of the break-even point for a business |
| | | | | 3. | Understands the computation of the break-even point is total fixed costs divided by selling price minus variable cost per unit |
| | | Benchmark 5. | Understands the difference between current liabilities (i.e., an obligation that will be paid by a current asset) and long-term liabilities (i.e., debts that are due after 12 months of maturity) and their impact on financial statements |
| | | | Knowledge/skill statements |
| | | | | 1. | Understands that current liabilities are those with an obligation that will be paid by a current asset |
| | | | | 2. | Understands that a long-term liability is a debt that is due after 12 months of maturity |
| | | | | 3. | Understands the impact of current liabilities on financial statements |
| | | | | 4. | Understands the impact of long-term liabilities on financial statements |
| | | Benchmark 6. | Understands appropriate accounting techniques used to account for investments and withdrawals by owners |
| | | | Knowledge/skill statements |
| | | | | 1. | Understands appropriate accounting techniques used to account for investments by owners |
| | | | | 2. | Understands appropriate accounting techniques used to account for withdrawals by owners |
| | | Benchmark 7. | Understands the concept of dividends |
| | | | Knowledge/skill statements |
| | | | | 1. | Knows the concept of dividends |
| Standard 14. Uses basic mathematical operations to solve business problems |
| | Level IV (Grade 9-12) |
| | | Benchmark 1. | Computes various taxes (e.g., individual income, property, sales, employer, employee) |
| | | | Knowledge/skill statements |
| | | | | 1. | Computes individual income taxes |
| | | | | 2. | Computes property taxes |
| | | | | 3. | Computes sales taxes |
| | | | | 4. | Computes employer taxes |
| | | | | 5. | Computes employee taxes |
| | | Benchmark 5. | Makes financial statement calculations (e.g., net sales, gross profit, operating expenses, net profit for the income statement; total assets, liabilities, and owner’s equity for the balance sheet; cash flow) |
| | | | Knowledge/skill statements |
| | | | | 1. | Makes financial statement calculations for net sales |
| | | | | 2. | Makes financial statement calculations for gross profit |
| | | | | 3. | Makes financial statement calculations for operating expenses |
| | | | | 4. | Makes calculations net profit for the income statement |
| | | | | 5. | Makes financial statement calculations for total assets |
| | | | | 6. | Makes financial statement calculations for liabilities |
| | | | | 7. | Makes calculations for owner’s equity for the balance sheet |
| | | | | 8. | Makes financial statement calculations for cash flow |
| | | Benchmark 9. | Makes calculations relating to depreciation, cost recovery, and depletion (e.g., calculates the depletion of natural resources, calculates book value) |
| | | | Knowledge/skill statements |
| | | | | 1. | Makes calculations relating to depreciation |
| | | | | 2. | Makes calculations relating to cost recovery |
| | | | | 3. | Makes calculations relating to depletion |
| | | | | 4. | Makes calculations for the depletion of natural resources |
| | | | | 5. | Makes calculations relating to book value |
| | | Benchmark 10. | Understands various sources of discrepancy between an estimate and a calculated answer |
| | | | Knowledge/skill statements |
| | | | | 1. | Understands the process of making an estimate |
| | | | | 2. | Understands the process of calculating an answer |
| | | | | 3. | Understands reasons for discrepancy between an estimate and a calculated answer |
| | | Benchmark 11. | Uses formulas and equations to determine price, profit, costs, and break-even points |
| | | | Knowledge/skill statements |
| | | | | 1. | Uses formulas to determine price |
| | | | | 2. | Uses formulas to determine profit |
| | | | | 3. | Uses formulas to determine costs |
| | | | | 4. | Uses formulas to determine break-even points |
| | | | | 5. | Uses equations to determine price |
| | | | | 6. | Uses equations to determine profit |
| | | | | 7. | Uses equations to determine costs |
| | | | | 8. | Uses equations to determine break-even points |
| | | Benchmark 12. | Uses recurrence relations (i.e., formulas expressing each term as a function of one or more of the previous terms, such as the Fibonacci sequence or the compound interest equation) to model and to solve real-world problems (e.g., home mortgages, annuities) |
| | | | Knowledge/skill statements |
| | | | | 1. | Uses recurrence relations to model real-world problems |
| | | | | 2. | Uses recurrence relations to solve real-world problems |
| | | | | 3. | Uses formulas expressing each term as a function of one or more of the previous terms in order to model and to solve real-world problems |
| | | | | 4. | Uses the Fibonacci sequence to model and to solve real-world problems |
| | | | | 5. | Uses the compound interest equation to model and solve real-world problems |
| | | | | 6. | Uses recurrence relations to model and to solve problems such as home mortgages |
| | | | | 7. | Uses recurrence relations to model and to solve problems such as annuities |