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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