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Topic: Business assets and liabilities 

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
 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
 Standard 5.  Understands the concepts of assets, liabilities, and owner’s equity
  Level IV (Grade 9-12)
   Benchmark 3.Understands the difference between current assets (i.e., expected to be converted into cash within 12 months, such as cash or merchandise), fixed assets (i.e., used over a period of several years of normal operations, such as a building a retailer owns), and intangible assets (e.g., reputation of servicing the public, franchise fees, patents, copyrights)
    Knowledge/skill statements
     1.Understands that current assets are those expected to be converted into cash within 12 months
     2.Knows that cash and merchandise are examples of current assets
     3.Understands that fixed assets are those used over a period of several years of normal operations
     4.Knows that an example of a fixed asset is a building that a retailer owns
     5.Understands that an example of an intangible assets is a reputation for public service
     6.Understands that an example of an intangible assets is franchise fees
     7.Understands that an example of an intangible assets is patents
     8.Understands that an example of an intangible assets is copyrights
   Benchmark 4.Understands the concept of liabilities (i.e., debts incurred by the business to acquire assets)
    Knowledge/skill statements
     1.Understands that liabilities are debts incurred by a business to acquire assets
   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
 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 8.Makes inventory record computations (e.g., determine inventory valuation; calculates cost in relation to inventories using purchase prices, transportation costs, taxes)
    Knowledge/skill statements
     1.Makes computations to determine inventory valuation
     2.Makes computations to calculate cost in relation to inventories using purchase prices
     3.Makes computations to determine transportation costs
     4.Makes computations to determine taxes
   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