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CTE/Business and Marketing Education Curriculum Accounting I
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Core Standards of the Course

Strand 1
Students will acquire accounting vocabulary and business skills used in accounting.

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Standard 1:
Define accounting, explain the purpose of the accounting system, and apply each step of the accounting cycle.

Standard 2:
Define and use accounting terminology and generally accepted accounting principles (GAAP).

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Standard 3:
Demonstrate critical thinking, problem solving, and decision making skills.

Standard 4:
Understand and use business ethics in accounting decision making.

Standard 5:
Identify and explain the three forms of business ownership.

  1. List the characteristics, advantages, and disadvantages of a sole proprietorship, partnership, and corporation.

Standard 6:
Identify and explain three types of businesses.

  1. List the characteristics of service, merchandising, and manufacturing businesses.

Standard 7:
Demonstrate mathematical calculations necessary for accounting procedures.


Strand 2
Students will list and identify characteristics of the three basic accounting equation elements.

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Standard 1:
Demonstrate an understanding of the fundamental accounting equation.

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  1. Understand the accounting equation: Assets = Liabilities + Owner’s Equity.
  2. Explain mathematically why the accounting equation must be in balance.
  3. Manipulate the accounting equation to find the missing variable.

Standard 2:
Classify accounts as assets, liabilities, or owner’s equity.

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Performance Objectives:

  1. Define the basic accounting equation.
  2. Classify items as assets, liabilities, or owner’s equity accounts.

Strand 3
Students will apply the theory of debit and credit to the accounting equation, define a business transaction, and show how and why accounts are increased and decreased.

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Standard 1:
Apply the rules of double-entry accounting to business transactions.

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  1. Refer to a chart of accounts to identify accounts that are affected.
  2. Show the resulting changes that occur within the accounting equation.

Standard 2:
Identify and describe the purpose of permanent/real accounts.

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Standard 3:
Identify and describe the purpose of temporary/nominal accounts.

Standard 4:
Use T-accounts to analyze business transactions into debits and credits.

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  1. Identify normal balance, increase and decrease sides of all accounts.
  2. Calculate changes in account balances.
  3. Calculate the increases/decreases to owner’s equity from each of the temporary accounts.
  4. Show that the accounting equation is in balance.

Performance Objectives:

  1. Explain why the accounting equation must be in balance.
  2. Analyze transactions that increase/decrease assets, liabilities and owner’s capital accounts and record them in T-accounts.
  3. Prepare a trial balance.

Strand 4
Students will identify and use source documents for journalizing transactions, post journal entries to a ledger, and prepare a trial balance.

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Standard 1:
Use source documents to analyze business transactions.

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  1. Identify different types of source documents.
  2. Evaluate checks, invoices, memorandums, receipts, and register tapes to determine accounts affected by a transaction.

Standard 2:
Explain the purpose of the general journal.

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  1. Record journal transactions in chronological order.
  2. Journal includes complete transaction.

Standard 3:
Use appropriate steps to journalize transactions, verifying that debits equal credits.

Standard 4:
Explain the purpose of the general ledger.

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  1. Organize the ledger according to account classification.
  2. Use general ledger account information to prepare financial statements.

Standard 5:
Post information from the general journal to the general ledger.

  1. Record date.
  2. Record journal page number.
  3. Record debit/credit amount.
  4. Calculate new account balance.
  5. Record account number in journal.
  6. Explain the need for post-referencing in accounting.
  7. Use the audit trail to trace a transaction.

Standard 6:
Prepare a trial balance to prove equality of debits and credits.

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  1. Explain the uses and limitations of a trial balance.
  2. Identify and use mathematical methods for locating and correcting errors shown by the trial balance. (e.g., difference is multiple of 1, evenly divided by 9, evenly divided by 2, or an omitted amount).
  3. Journalize correcting entries.

Performance Objectives:

  1. Analyze and journalize business transactions using source documents.
  2. Open general ledger accounts and post business transactions from a general journal to the accounts in the general ledger (including correcting entries).
  3. Prepare a trial balance.

Strand 5
Students will prepare, analyze and interpret financial statements.

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Standard 1:
Know the elements of an appropriate heading for each financial statement.

Standard 2:
Prepare a formal Income Statement.

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  1. Calculate revenue.
  2. Calculate expenses.
  3. Compute net income/net loss.

Standard 3:
Determine the ending capital account balance.

  1. Compute the change in capital using one of the following formulas: Beginning capital + net income - drawing/withdrawals or Beginning capital - net loss - drawing/withdrawals.

Standard 4:
Prepare a formal balance sheet.

  1. List and calculate total assets.
  2. List and calculate total liabilities.
  3. Record ending capital.
  4. Prove the accounting equation is in balance.

Standard 5:
Explain the purposes of each financial statement, and describe the way the statements articulate with each other.

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Standard 6:
Use percentages and ratios to analyze financial statement data.

Performance Objectives:

  1. Prepare and explain the purposes of an income statement and a balance sheet.
  2. Describe how financial statements articulate with each other.

Strand 6
Students will complete the accounting cycle.

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Standard 1:
Journalize and post closing entries.

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  1. Identify accounts that need to be closed (temporary accounts).
  2. Journalize and post the entry to bring revenue/sales account to zero balance.
  3. Journalize and post the entry to bring expense accounts to zero balances.
  4. Journalize and post the entry to bring income summary to a zero balance dependent on net income or loss.
  5. Journalize and post the entry to bring drawing/withdrawal account to zero balance.
  6. Verify that the current balance of the capital account matches the ending capital account balance on the balance sheet.

Standard 2:
Prepare a post-closing trial balance to prove equality of debits and credits for permanent accounts.


Standard 7:
Students will demonstrate an understanding of cash control systems.

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Standard 1:
Understand banking vocabulary and identify the specific details of business-related banking forms/documents.

  1. Prepare banking documents/forms (i.e. deposit slips, checks, and endorsements).
  2. Prepare a bank statement reconciliation and make necessary journal entries.
  3. Demonstrate cash proof of the checkbook, bank statement and cash account.

Standard 2:
Establish and replenish a petty cash fund.

  1. List and discuss situations in which a petty cash fund would be used.
  2. Journalize an entry to establish a petty cash fund.
  3. Journalize an entry to increase or decrease the balance in the petty cash fund.
  4. Prepare petty cash proof using petty cash receipts as source documents.
  5. Journalize an entry to replenish the petty cash fund.

Strand 8 (optional)
Students will acquire automated accounting competency or calculator proficiency if computers are not available .

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Standard 1:
Use spreadsheet and accounting software.

  1. Maintain accounting records.
  2. Graph accounting data.

Standard 2:
Describe the differences between manual and computerized accounting systems.

  1. Understand automated posting.
  2. Understand automated computation.
  3. Print reports.

Standard 3:
Identify types of accounting software.

  1. Identify industry-standard accounting and tax software.

Standard 4:
Explore internet web sites for accounting purposes.

Standard 5:
Explore careers in the field of accounting.



UEN logo http://www.uen.org - in partnership with Utah State Board of Education (USBE) and Utah System of Higher Education (USHE).  Send questions or comments to USBE Specialist - Laura deShazo and see the CTE/Business and Marketing Education website. For general questions about Utah's Core Standards contact the Director - THALEA LONGHURST .  
Email:  thalea.longhurst@schools.utah.gov

These materials have been produced by and for the teachers of the State of Utah. Copies of these materials may be freely reproduced for teacher and classroom use. When distributing these materials, credit should be given to Utah State Board of Education. These materials may not be published, in whole or part, or in any other format, without the written permission of the Utah State Board of Education, 250 East 500 South, PO Box 144200, Salt Lake City, Utah 84114-4200.