Common Planner
K–12 Standards

Introduction to Accounting (2016)

Other Indiana CTE sets

 Accounting Cycle: Students connect the steps of the accounting cycle to the various types of business ownership.

  • 1

    Define accounting and explain the purpose of the accounting systemIA-1.1

  • 2

    Explain the importance of following Generally Accepted Accounting Principles (GAAP) and interpret, analyze, and apply the standards correctlyIA-1.2

  • 3

    Demonstrate a working knowledge of the fundamental accounting equationIA -1.3

  • 4

    Discuss the purpose of the elements of financial statements: assets, liabilities, contributions by owners, distributions to owners, equity, revenues, expenses, gains and lossesIA-1.4

  • 5

    Identify and interpret a variety of source documentsIA-1.5

  • 6

    Analyze business transactions using source documents and interpret their effect on the accounting equationIA-1.6

  • 7

    Explain the double-entry system of accounting and demonstrate the applications of the debit and credit rules when recording and analyzing business transactionsIA-1.7

  • 8

    Journalize business transactions using various journal formatsIA-1.8

  • 9

    Explain the purpose of a journal and its relationship to the ledger through postingsIA-1.9

  • 10

    Construct and maintain the chart of accountsIA-1.10

  • 11

    Construct a worksheet and use it to prepare financial statements using various formatsIA-1.11

  • 12

    Prepare a trial balance and use it to determine the necessary adjusting entries including accruals and deferralsIA-1.12

  • 13

    Prepare financial statements in appropriate form and specify the purpose and relationship of each statementIA-1.13

  • 14

    Describe the purpose of the closing process and prepare closing entries and the post-closing trial balanceIA-1.14

  • 15

    Compare and contrast the advantages and disadvantages of the forms of business ownership--sole proprietorships, partnerships, and the varying types of corporationsIA-1.15

Accounting Principles: Students apply concepts of the Generally Accepted Accounting Principles (GAAP) to determine the value of assets, liabilities, owner's equity, revenues, and expenses.

  • 1

    Identify asset types and their effect on financial statementsIA-2.1

  • 2

    Specify the importance of internal cash control and banking activities and demonstrate their useIA-2.2

  • 3

    Explain the use of and maintain the accounts receivable subsidiary ledgerIA-2.3

  • 4

    Apply appropriate accounting techniques for uncollectible accountsIA-2.4

  • 5

    Explain the purpose of notes receivable; establish, calculate, and maintain records for receivables and related interestIA-2.5

  • 6

    Compare, contrast and evaluate inventory concepts and costing procedures to a businessIA-2.6

  • 7

    Apply appropriate accounting concepts and techniques for acquisition, depreciation, depletion, and disposal of assetsIA-2.7

  • 8

    Identify liability types and their effect on financial statementsIA-2.8

  • 9

    Explain the use of and maintain the accounts payable subsidiary ledgerIA-2.9

  • 10

    Explain the purpose of notes payable; establish, calculate, and maintain records for payables and related interestIA-2.10

  • 11

    Apply Generally Accepted Accounting Principles (GAAP) and techniques to analyze and record the issuance, amortization, and retirement of bondsIA-2.11

  • 12

    Analyze and record mortgage and lease obligationsIA-2.12

  • 13

    Identify the components of owner's equity and their effect on financial statementsIA-2.13

  • 14

    Discuss the purpose of various owner's equity accounts as they relate to the business ownership structureIA-2.14

  • 15

    Identify revenues and their effect on financial statementsIA-2.15

  • 16

    Determine procedures for cash basis versus accrual methodsIA-2.16

  • 17

    Identify expenses and their effect on financial statementsIA-2.17

  • 18

    Differentiate between cost of goods sold and general operating expensesIA-2.18

  • 19

    Discuss year-end cut-offs for expensesIA-2.19

Financial Statements: Students analyze and synthesize financial statements to determine the financial position of a business.

  • 1

    Create financial statements in various formatsIA-3.1

  • 2

    Evaluate financial statements using horizontal analysis, vertical analysis, and commonly used financial ratiosIA-3.2

  • 3

    Interpret and evaluate industry trends and other relevant data to make sound business decisionsIA-3.3

  • 4

    Discuss the importance of integrity, confidentiality, and high ethical standards in the preparation of financial statementsIA-3.4

  • 5

    Discuss the three basic types of business activities--operating, investing, and financingIA-3.5

  • 6

    Generate statements of cash flow using the direct and indirect methodsIA-3.6

Specialized Applications: Students apply Generally Accepted Accounting Principles (GAAP) to various forms of ownership and payroll, income taxation, and managerial accounting systems.

  • 1

    Compare and contrast the advantages and disadvantages of corporationsIA-4.1

  • 2

    Apply appropriate accounting techniques for the formation, allocation and distribution of earnings, and the dissolution of corporationsIA-4.2

  • 3

    Generate and maintain employee and employer payroll records using manual and computerized systemsIA-4.3

  • 4

    Analyze the effects of payroll taxes for a business enterpriseIA-4.4

  • 5

    Prepare federal, state, and local government payroll reportsIA-4.5

  • 6

    Differentiate between taxation at personal and business levels, including tax-planning strategies IA-4.6

Frequently asked questions

What grade levels do these standards cover?
Grade 10 and Grade 11
Where can I read the official document?
Indiana Department of Education Academic Standards

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