Accounting

From the National Standards for Business Education © 2007 by the National Business Education Association, 1914 Association Drive, Reston, VA 20191.

ACCOUNTING is the language of business and an integral aspect of all business activities. Mastery of fundamental accounting concepts, skills, and competencies is essential to making informed business decisions. Regardless of students’ chosen course of study or career path, accounting prepares them to be educated business professionals and informed consumers.

The accounting standards reflect the importance of being able to understand, interpret, and use accounting information to make financial decisions. In particular, the standards focus on the ability to

• read, interpret, and analyze financial information;
• apply generally accepted accounting principles;
• understand how the accounting system provides business information;
• recognize the various users of accounting information; and
• understand the dynamic nature of the business environment in which accounting information is used.

The accounting standards also focus on the skills and competencies students need to acquire and develop as they further their education, prepare to enter the workforce, and pursue their chosen career path. These skills include

• strategic and critical thinking;
• risk analysis;
• problem solving and decision making;
• communication;
• team work and leadership;
• the ability to employ and use technology; and
• an awareness of the legal and regulatory environment, with an emphasis on ethical responsibility.

The accounting standards identify the knowledge and skills appropriate for courses at both the high school and two-year college levels. Performance expectations appropriate for the second year of high school accounting are indicated with an asterisk.

I. The Accounting Profession
Achievement Standard: Understand the role that accountants play in business and society.
Achievement Standard: Describe career opportunities in the accounting profession.
Achievement Standard: Demonstrate the skills and competencies required to be successful in the accounting profession and/or in an accounting-related career.

II. Financial Reports
Achievement Standard: Develop an understanding and working knowledge of an annual report and financial statements.

III. Financial Analysis
Achievement Standard: Assess the financial condition and operating results of a company and analyze and interpret financial statements and information to make informed business decisions.

IV. Accounting Applications
Achievement Standard: Identify and describe generally accepted accounting principles (GAAP), explain how the application of GAAP impacts the recording of financial transactions, and the preparation of financial statements.

V. Accounting Process
Achievement Standard: Complete the steps in the accounting cycle in order to prepare the financial statements.

VI. Interpretation and Use of Data
Achievement Standard: Use planning and control principles to evaluate the performance of an organization and apply differential analysis and present-value concepts to make decision.

VII. Compliance
Achievement Standard: Develop a working knowledge of individual income tax procedures and requirements to comply with tax laws and regulations.