Standards Database Logo
Home | Browse | Search | Purpose | History | Process | Acknowledgment| Reference

 


 


Topic: Profit and loss 

Business Education

 Standard 1.  Understands and applies basic procedures in the accounting cycle
  Level IV (Grade 9-12)
   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
 Standard 3.  Interprets and creates basic financial statements
  Level IV (Grade 9-12)
   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 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 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
 Standard 5.  Understands the concepts of assets, liabilities, and owner’s equity
  Level IV (Grade 9-12)
   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
 Standard 14.  Uses basic mathematical operations to solve business problems
  Level IV (Grade 9-12)
   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 7.Makes sales computations (e.g., net sales, percent of markup, percent of markdown)
    Knowledge/skill statements
     1.Makes net sales computations
     2.Makes computations for the percent of markup
     3.Makes computations for the percent of markdown
   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