CLUSTER
Business and Marketing
COURSE
Accounting Principles I
WVEIS CODE
BM1401
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,
General Management and Entrepreneurship concentrations.
SKILL SETS
Financial Reports
Financial Analysis
1
Accounting Principles I
Skill Set
Knowledge Objectives
1401.1
Performance Objectives
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1401.8
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1401.13
Skill Set
Knowledge Objectives
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Performance Objectives
WVEIS 1401
Accounting Principles
Students will demonstrate knowledge of


generally accepted accounting principles (GAAP).
application and impact of GAAP on the recordkeeping of financial
transactions.
 preparation of financial statements.
Students will

describe and explain the conceptual framework of accounting and generally
accepted accounting principles and assumptions.
 define assets, liabilities, equity, revenue, expenses gains and losses.
 explain the accounting methods used to determine the value of accounts
receivable to be reported on the balance sheet and describe the effect on the
income statement.
 determine the cost of inventory for merchandising.
 record transactions for accounts payable and other short-term debt.
 record equity-related transactions.
 describe the criteria used to determine revenue recognition.
 record revenue-related transactions.
 describe the criteria used to determine expense recognition.
 record expense-related transactions.
 identify and apply appropriate information technology to the accounting
system.
 describe how accounting information facilitates management decision-making.
Accounting Process
Students will demonstrate knowledge of
 steps in the accounting cycle.
 preparing financial statements.
Students will
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1401.16
1401.17
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1401.20
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1401.22
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describe the purpose of the accounting system.
describe the purpose of journals and ledgers and their relationship.
describe the impact of technology on the accounting process.
identify and explain the advantages and disadvantages of different types of
accounting systems.
differentiate between accounting and bookkeeping.
analyze and describe how business transactions impact the accounting
equation.
apply the double-entry system of accounting to record business transactions
and prepare a trial balance.
explain the need for adjusting entries and record adjusting entries.
2
1401.23
1401.24
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
explain the purposes of the closing process and record closing entries.
prepare the financial statements for the different types of business operations
and ownership structures.
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 describe the relationship between the closing process, the financial statements
and the post-closing trial balance.
Skill Set
Financial Reports
Knowledge Objectives
Students will demonstrate knowledge of
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Performance Objectives
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1401.29
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Skill Set
Knowledge Objectives
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 annual reports.
 financial statements.
Students will
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
identify sources for obtaining financial reports.
describe the users and uses of financial information.
explain the role of management and the auditor in preparing and issuing an
annual report.
 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.
Financial Analysis
Students will demonstrate knowledge of


financial conditions and operating results of a company.
financial statements and information needed to make informed business
decisions.
3
Performance Objectives
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Skill Set
Knowledge Objectives
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Performance Objectives
Students will

discuss the information that can be obtained from analyzing financial
statements.
 assess profitability by calculating and interpreting financial ratios.
 apply information technology to conduct financial analysis.
 identify and explain common methods for creating financial statements and
financial ratios.
 describe the ethical and legal implications resulting from others’ manipulation
of financial statements and financial ratios.
 analyze cash flow from operating activities to assess profitability and liquidity.
Compliance
Students will demonstrate knowledge of
 individual income tax procedures.
 tax laws and regulations.
Students will
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describe the process by which tax laws are created.
describe the composition of taxable income and calculate income tax.
complete the applicable individual income tax forms.
identify, discuss and apply strategies for minimizing taxable income.
distinguish between tax avoidance and tax evasion.
explain why income for financial reporting and taxable income are calculated
differently.
calculate net pay.
calculate employer’s payroll taxes.
prepare payroll reports.
4