ACCOUNTINGCLUSTERSTANDARDS.docVIP

ACCOUNTING CLUSTER STANDARDS V4 Content Standards Concepts Performance Standards/Performance Indicators Culminating Activity Use accounting concepts and practices of the basic accounting system to evaluate the performance of an organization and apply differential analysis and present-value concepts to make decisions. BLA 1.0 Demonstrate a sound understanding of the fundamental concepts and practices of the basic accounting system. Accounting Concepts and Practices Accounting Cycle Accounting Process Financial Statements Other Applications BLA 1.1--Use basic accounting concepts and practices. Apply generally accepted accounting principles (GAAP) and procedures in preparing, maintaining, and interpreting accounting records. Demonstrate an understanding of the fundamental accounting equation. Analyze business transactions by using principles and techniques needed to solve problems or make decisions. Utilize current technology to prepare and/or maintain accounting records, includes 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. 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. Prepare a post -closing trial balance. Interpret the financial information. BLA 1.3--Determine the value of assets, liabilities, and owner’s equity according to generally accepted accounting principles