Accounting Cluster Standards

DRAFT ACCOUNTING CLUSTER STANDARDS V4

Content Standards Concepts Performance Standards/Performance Indicators Culminating Use accounting concepts and practices of the basic accounting system to evaluate the Activity performance of an organization and apply differential analysis and present-value concepts to make decisions. BLA 1.0 Accounting BLA 1.1--Use basic accounting concepts and practices. Concepts and  Apply generally accepted accounting principles (GAAP) and procedures in preparing, Demonstrate a sound Practices maintaining, and interpreting accounting records. understanding of the  Demonstrate an understanding of the fundamental accounting equation. fundamental concepts  Analyze business transactions by using principles and techniques needed to solve and practices of the problems or make decisions. basic accounting  Utilize current technology to prepare and/or maintain accounting records, includes system. evaluating the impact of accounting methods, and estimates on the financial statement and ratios, to prepare charts and graphs useful in analyzing the financial condition of a business, and to prepare budgets.

Accounting Cycle BLA 1.2--Complete the steps of the accounting cycle and explain the purpose of each step.  Analyze source documents and journalize business transactions using various journal formats.  Post journal entries to the ledger.  Prove the equality of the debits and credits.  Prepare a worksheet and determine necessary adjustments (accruals and deferrals ) to prepare financial statements.  Prepare and explain the purposes of each financial statement and describe the way they relate to each other.  Explain the purposes of the closing process, journalize, and post the adjusting and closing entries. Accounting  Prepare a post -closing trial balance. Process  Interpret the financial information.

BLA 1.3--Determine the value of assets, liabilities, and owner’s equity according to generally accepted accounting principles, explaining when and why they are used. Assets  Identify current and long-term assts and explain their importance on financial statements.  Define cash, prepare bank reconciliation, establish and maintain petty cash accounts, set up and maintain cash control techniques, describe the benefits of electronic fund transfers, ATM transactions, and uses of debit cards.  Create and maintain the accounts receivable subsidiary ledger, account for credit card sales, and apply appropriate accounting techniques for uncollectible accounts. Page 1 of 5 1/9/2018 DRAFT Content Standards Concepts Performance Standards/Performance Indicators  Evaluate notes receivable; set up and maintain accounts for receivables and related interest.  Compare inventory concepts and costing procedures and apply these concepts and procedures to merchandising and manufacturing businesses.  Compare and analyze various depreciation methods and their impact on the financial statements.  Calculate depreciation and apply appropriate accounting concepts and techniques for acquisition, depreciation, and disposal of property, plant, and equipment.  Account for the acquisition, amortizations, and disposal of intangible assests.  Account for the acquisition, depletion, and disposal of natural resources. Liabilities  Identify current and long-term liabilities and explain their importance on financial statements.  Create and maintain accounts payable subsidiary ledger.  Analyze the purposes of notes payable; set up and maintain accounts for payables and related interest.  Use appropriate accounting concepts and techniques to analyze and record the issuance, amortizations, and retirement of bonds. Financial Owner’s Equity Statements  Describe the purpose of the capital and drawing accounts for sole proprietorship and partnership.  Apply appropriate accounting techniques to account for investments and withdrawals by owners.  Evaluate the purpose of common stocks, preferred stocks paid-in capital, retained earnings and dividends for a corporation.  Apply appropriate accounting concepts and techniques to record investments by stockholders and the declaration and payment of dividends.

Other BLA 1.4--Use current technology to prepare, interpret, and analyze financial statements for Applications service, merchandising, and manufacturing businesses.  Analyze the income statement and balance sheet of a business by comparing with industry standards.  Describe the importance of high ethical standards in the preparation of financial statements.  Prepare a statement of cash flows using the direct and indirect methods.  Perform horizontal and vertical analyses and compute appropriate ratios to evaluate solvency and earning power.  Organize and evaluate information, alternatives, cost/benefits, risks and rewards, and choose solution.

BLA 1.5--Apply appropriate accounting principles to various forms of ownership, payroll, Page 2 of 5 1/9/2018 DRAFT Content Standards Concepts Performance Standards/Performance Indicators income taxation, and managerial systems. Forms of Ownership  Compares the three forms of business ownership—sole proprietorships, partnerships, and corporations.  Apply appropriate accounting procedures for the formation, allocation of earnings, dissolution, and liquidation of a partnership.  Apply appropriate accounting principles to government and not-for-profit entities. Payroll  Prepare and maintain payroll records, manually or computerized.  Calculate gross earnings and calculate payroll deductions including federal income tax, Social Security tax, Medicare tax, state income tax, and other deductions to determine net pay.  Calculate employer’s payroll taxes and other employee benefits paid by the employer.  Prepare federal, state, and other payroll reports. Income Taxation  Determine the difference between taxation at the personal and business levels. Managerial Accounting  Analyze the management process and the role of managerial accounting.  Explain the costs and accounts that are unique to the manufacturing process and distinguish between product and period costs.  Apply appropriate accounting concepts and procedures for a job order and a process costing system. Planning and Control  Use planning and control principles to evaluate the performance of an organization.  Compare the behavior of fixed, variable, and mixed costs.  Apply cost-volume-profit and contribution margin analyses in planning operations.  Compare and evaluate periodic accounting reports to determine profitability and liquidity of a business  Prepare a budget for planning purposes.

BLA 2.0 Professionalism 2.1--Need Benchmark and Ethics Apply and commit to  Adhere to ethical standards by law standards of personal  Evaluate information in a manner free of distortions, personal bias or conflicts of and professional interest. integrity, honesty, and fairness. (AICPA’s Code of Professional Conduct for Accountants, etc.) Page 3 of 5 1/9/2018 DRAFT

Content Standards Concepts Performance Standards/Performance Indicators Apply the conventions Communication Select the structure, format and features appropriate to the purpose, audience and and principles of context of financial and non-financial information and materials for the oral communication in presentation. business and industry  Checks the accuracy and relevance of information. to form and influence accounting decisions.  Develops documentation cognizant of neatness and audience appeal.  Anticipates reader’s problem/questions.  Uses a variety of formatting techniques to add emphasis such as headings, subheadings, highlighting main ideas, including graphics, utilizing color and motion.

Exhibit a control of written and oral English language rules in an accounting report and in materials for the oral presentation.  Ensures the proper application of:  Grammar  Sentence structure  Punctuation  Sentence construction  Spelling  Word usage

Prepare a report with objectivity, conciseness, and clarity, in accordance with industry expectations to be presented to an audience of practitioners.  Develops a formal report to evaluate the performance of an organization.  Financial reports  Interpret and analyze the financial position  Analyze the impact of potential actions.  Identify and manage business and audit risks.  Recommended course of action

Make an oral presentation of the financial report to an audience of practitioners.  Creates and delivers a presentation detailing the essential components of the financial and non-financial situation of an organization  Organizes the presentation in a logical way. . Identifies main points and subpoints. . Selects best presentation pattern (chronological, spatial, topical, cause and effect, problem solution).

of 5 1/9/2018 DRAFT Content Standards Concepts Performance Standards/Performance Indicators . Provides supporting details (graphs, charts, examples, etc.) . Plans the introduction, body and conclusion. . Includes effective transitions.  Adjusts the presentation to suit the audience.  Selects pertinent verbal, visual and other supporting material.  Speaks clearly, fluently, confidently, and expressively. . Speak loudly enough to be heard. . Use proper vocabulary, enunciation, pronunciation. . Utilize oral speaking styles (keep sentences short; use personal pronouns, contractions, and an active voice; and directly address listeners). . Establish and maintain eye contact. . Stand and move effectively. . Speak with enthusiasm and sincerity.  Responds appropriately to questions posed by practitioners and members of the audience.  Evaluates the presentation for effectiveness and identifies specific revisions that would strengthen the presentation.

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