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

Strand 1
Understand what Generally Accepted Accounting Principles (GAAP) are and the objectives of financial reporting.

Standard 1:
Explain how the Generally Accepted Accounting Principles (GAAP) provide guidance and structure for preparing financial statements.

Standard 2:
Describe the information provided in each financial statement (income statement, balance sheet, cash flow statement, statement of equity) and how the statements integrate with each other.

Stardard 3:
Identify business ownership structures (i.e., proprietorship, partnership, corporation).

Standard 4:
Identify types of business (i.e., service, manufacturing, merchandising

Standard 5:
Explain the role of management and auditors in preparing and issuing an annual report.

Standard 6:
Describe the relationship among assets, liabilities, and equity on a balance sheet.

Standard 7:
Identify the classifications within assets (e.g., current, fixed), liabilities (e.g., current, long-term) and equity.

Standard 8:
Identify the proper accounts used to prepare an income statement

Standard 9:
Identify and explain what is involved in the three phases of the management cycle (i.e., planning, performing, evaluating) and how those relate to accounting functions.

Standard 10:
Explain how internal control procedures are used to safeguard assets.

Standard 11:
Identify the elements needed to complete a bank reconciliation (i.e,, cash balance, bank balance, outstanding checks, outstanding deposits, service charges).

Standard 12:
Identify taxes associated with payroll, define employer- and/or employee-paid taxes, and calculate taxes appropriately.


Strand 2
Understand the operations and production costs of a business.

Standard 1:
Identify variable costs, fixed costs, and mixed costs.

Standard 2:
Use high-low analysis to determine variable costs, fixed costs, and mixed costs.

Standard 3:
Define and calculate break‐even point and perform cost‐volume‐profit (CVP) analysis.

Standard 4:
Apply sensitivity analysis (i.e., changes to fixed costs and/or variable costs) to CVP analysis.

Standard 5:
Determine selling price using sensitivity analysis and CVP analysis.

Standard 6:
Describe the process of determining selling prices, and demonstrate how various strategies are used to determine selling price.

Standard 7:
Identify product costs (e.g., direct/indirect materials, direct/indirect labor, manufacturing overhead).

Standard 8:
Describe the differences between product and non-product costs.

Standard 9:
Explain the flow of costs through the manufacturing accounts used in process/product or job-order costing systems.

Standard 10:
Explain how to compute a predetermined overhead rate, its use in job-order costing, and its use in determining over/under-applied manufacturing overhead.

Standard 11:
Understand the necessary journal entries to record the costs of direct material, direct labor, and manufacturing overhead.

Standard 12:
Know the components of a schedule of cost of goods manufactured, a schedule of cost of goods sold, and an income statement for a manufacturer.

Performance Objective:
Demonstrate various strategies used to determine selling price (i.e., sensitivity analysis and CVP analysis).


Strand 3
Understand the flow of the accounting cycle and complete the steps of the accounting cycle.

Standard 1:
Describe the purpose of the accounting system.

Standard 2:
Analyze and describe how business transactions affect the accounting equation.

Standard 3:
Apply the double-entry accounting system to record business transactions in a journal, post transactions to a ledger, and prepare a trial balance.

Standard 4:
Explain the need for adjusting entries and record adjusting entries.

Standard 5:
Explain the need for and prepare the financial statements (i.e., income statement, balance sheet, statement of equity, cash flow statement).

Standard 6:
Explain the purposes of the closing process, and record closing entries.

Standard 7:
Prepare a post-closing trial balance.

Performance Objective:
Complete sample day-to-day transactions, adjusting entries, and closing entries then prepare the necessary financial statements (i.e., income statement, balance sheet, statement of equity, cash flow statement).


Strand 4
Understand different inventory costing methods and how each method affects the cost of goods sold.

Standard 1:
Describe the differences between the periodic and perpetual inventory systems, and record business transactions using both methods.

Standard 2:
Define and calculate cost of goods sold and ending inventory using the LIFO, FIFO, and weighted average inventory costing methods.

Standard 3:
Calculate inventory turnover ratio.

Standard 4:
Explain how inventory for a manufacturing business differs from inventory for a merchandising business.

Performance Objective:
Calculate the ending inventory balance and cost of goods using the LIFO, FIFO and weighted average methods.


Strand 5
Understand the sales, revenue recognition, and collections processes.

Standard 1:
Describe the criteria used to determine the timing of revenue recognition and record revenue-related transactions accordingly.

Standard 2:
Explain the accounting methods used to determine the accounts receivable amount on the balance sheet.

Standard 3:
Record transactions involving accounts receivable, uncollectible accounts, write-offs, and recoveries and explain their impact on the income statement.

Standard 4:
Describe the difference between the gross price method and the net price method, and record business transactions using both methods.

Standard 5:
Calculate and interpret the accounts receivable turnover ratio.

Performance Objective:
Recognize revenue using the gross price method and the net price method, and journalize related transactions using both methods.


Strand 6
Understand the accounting methods for purchases, depreciation and disposal of fixed assets.

Standard 1:
Understand different classifications of fixed assets and the useful life of each.

Standard 2:
Determine the total cost of the asset (i.e., sales tax, FOB, delivery, installation) and record the purchase.

Standard 3:
Understand depreciation, depletion and amortization with different methods (i.e., double-declining balance, straight-line) and explain their impact on the financial statements. Calculate amounts and record applicable journal entries.

Standard 4:
Determine the net book value of fixed assets and properly report it on the balance sheet.

Standard 5:
Record the gain/loss on the sale and/or disposal of fixed assets and their impact on the financial statements.

Performance Objective:
Calculate amounts and record journal entries for depreciation, depletion and amortization using different methods (i.e., straight-line, double-declining balance).


Strand 7
Apply generally accepted accounting principles to long-term liabilities and equity transactions.

Standard 1:
Compare and contrast debt and equity financing.

Standard 2:
Identify and describe the different classes of stock and explain the rights afforded each class of stock.

Standard 3:
Explain cash dividends, stock dividends, and stock splits, and their impact on the financial statements.

Standard 4:
Record stock transactions (e.g., sale of stock, dividends distribution, and treasury stock).

Standard 5:
Compare and contrast multiple financing options (i.e., periodic payment note payable, lump-sum note payable, and periodic and lump-sum note payable). Calculate the carrying value, interest expense, and cash payments associated with these loan types.

Standard 6:
Calculate the TIE (times-interest-earned) ratio.

Standard 7:
Record the issuance and interest expense on notes payable.

Standard 8:
Record transactions for bonds issued at face value, a premium, and a discount, and the expiration of those bonds.

Standard 9:
Calculate and record interest expense for bonds issued at face value, a premium, and a discount using the effective-interest method.

Performance Objectives:


Strand 8
Analyze financial statements using ratios.

Standard 1:
Explain the difference in net income and income from continuing operations (e.g., discontinued operations, extraordinary items).

Standard 2:
Define and calculate earnings per share (EPS).

Standard 3:
Define and be able to calculate the current ratio and debt-equity ratio.

Standard 4:
Define and calculate return on sales (i.e., net profit margin) and return on equity.

Performance Objective:
Calculate financial ratios (e.g., debt-to-equity, return on equity, return on sales, current ratio), and use the ratios to analyze the financial health of a company as related to the income statement and balance sheet.


Strand 9 (Optional)
This standard is optional if time allows. All objectives are independent and should be incorporated into curriculum where they relate, not taught together as one standard.

Standard 1:
Analyze a make-or-buy decision.

Standard 2:
Analyze a keep-or-drop decision.

Standard 3:
Analyze an accept-or-reject decision.

Standard 4:
Explain how an activity-based costing system operates, including the identification of activity cost pools and the selection of cost drivers.

Standard 5:
Determine present value and future value cash flows.

Standard 6:
Use net present value concepts to make investment decisions.

Standard 7:
Optional industry certifications available: Quickbooks, MOS Excel.



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

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