CLUSTER Business and Marketing
COURSE
WVEIS CODE
Accounting Principles I
1401
National Standards for Business Education
ONET (Tasks)
Course Description:
The Skill Sets in this course are representative of the basic knowledge included in a Career and Technical
Education/Business and Marketing concentration. Incorporated into this course are elements of accounting knowledge and skills necessary for a career in the business and marketing field. This course is recommended as an Elective in the Marketing Management, Career and Work Skills Training (CWST), Business Finance and
General Management concentrations.
SKILL SETS
Financial Reports
Financial Analysis
1

Accounting Principles I
Skill Set Financial Reports
Knowledge Objectives Students will demonstrate knowledge of
WVEIS 1401
 annual reports.
 financial statements.
Performance Objectives Students will
 identify sources for obtaining financial reports.
 describe the users and uses of financial information.
 identify the sections in an annual report and the purpose of each section.
 explain the role of management and the auditor in preparing and issuing an annual report.
 identify and explain the types of audit opinions.
 explain the role of accounting and regulatory organizations in relation to financial reports.
 describe the information provided in each financial statement and how the statements articulate with each other.
 describe the relationship between assets, liabilities and equity on the balance sheet.
 identify and explain the classifications within assets, liabilities and equity.
 identify the different formats of an income statement.
 identify the classifications in an income statement and explain their relationship to each other (revenue, expenses, gains, losses).
 describe changes in the ownership structure using the statement of equity.
 explain how and why the conceptual framework of accounting and generally accepted accounting principles provide guidance and structure for preparing financial statements.
 describe the different forms of business ownership and the advantages and disadvantages of each form.
 explain how the different forms of business ownership are reported in the financial statements.
 identify the different types of business operations.
 explain how the different types of business operations are reflected in the financial statements.
 identify and explain the business activities reported in a statement of cash flows (operating, investing, financing).
2

Skill Set Financial Analysis
Knowledge Objectives Students will demonstrate knowledge of
 financial conditions and operating results of a company.
 financial statements and information needed to make informed business decisions.
Performance Objectives Students will
 discuss the information that can be obtained from analyzing financial statements.
 recognize the primary areas of analysis (trend analysis, profitability, liquidity, capital structure) and explain the information that can be obtained from each type of analysis.
 perform a horizontal and vertical analysis of the income statement and balance sheet.
 assess profitability by calculating and interpreting financial ratios.
 assess liquidity and solvency by calculating financial ratios.
 compare and contrast debt and equity financing and explain the impact on the financial statements.
 assess capital structure by calculating and interpreting financial ratios.
 research industry averages and explain their use in assessing the financial condition, operating results, profitability, liquidity and capital structure.
 apply information technology to conduct financial analysis.
 identify and explain common methods for manipulating financial statements and financial ratios.
 describe the ethical and legal implications resulting from the manipulation of financial statements and financial ratios.
 use the statement of cash flow to analyze business activities (operating, investing, financing).
 analyze cash flow from operating activities to assess profitability and liquidity.
3