What grade levels do these standards cover?

Grade 9, Grade 10, Grade 11, and Grade 12

Where can I read the official document?

Michigan Center for Career and Technical Education

K–12 Standards

CTE Finance - Technical Standards
Other Michigan CTE sets
CTE Business Administration, Management & Operations - Technical Standards
Digital/Multimedia & Information Resources Design 11.0801 (2025)
Graphic Communications and Print Technology 10.0301 (2026)
Marketing and Entrepreneurship: 10-12
Education General 13.000 (Competency Codes, Unit Topics, and Competency Statements Only)

Maintain, Control, and plan the use of financial resources to protect solvencya

1
Discuss the fundamental principles of moneya.1
1. a
  Explain forms of financial exchange (cash, credit, debit, electronic funds transfer, etc.)a.1.a
2. b
  Identify types of currency (paper money, coins, banknotes, government bonds, treasury notes, etc.)a.1.b
3. c
  Describe functions of money (medium of exchange, unit of measure, store of value)a.1.c
4. d
  Describe sources of income (wages/salaries, interest, rent, dividends, transfer payments, etc.)a.1.d
5. e
  Explain the time value of moneya.1.e
6. f
  Explain the purposes and importance of credita.1.f
7. g
  Explain legal responsibilities associated with financial exchangesa.1.g
2
Analyze personal financial needs and goalsa.2
3
Manage personal finances to achieve financial goalsa.3
1. a
  Explain the nature of tax liabilitiesa.3.a
2. b
  Interpret a pay stuba.3.b
3. c
  Validate credit historya.3.c
4. d
  Protect against identity thefta.3.d
5. e
  Prepare personal income tax forms (i.e., 1040 EZ)a.3.e
4
Describe the use of financial-services providersa.4
1. a
  Describe types of financial-services providersa.4.a
2. b
  Discuss considerations in selecting a financial-services providera.4.b
5
Use investment strategiesa.5
1. a
  Explain types of investmentsa.5.a
2. b
  Explain the nature of capital investmenta.5.b
6
Identify potential business threats and opportunities to protect a business's financial well-beinga.6
1. a
  Describe the concept of insurancea.6.a
2. b
  Identify speculative business risksa.6.b
3. c
  Explain the nature of risk managementa.6.c
7
Obtain business credit and control its usea.7
1. a
  Explain the purposes and importance of obtaining business credita.7.a
2. b
  Analyze critical banking relationshipsa.7.b
3. c
  Identify risks associated with obtaining business credita.7.c
4. d
  Explain sources of financial assistancea.7.d
5. e
  Explain loan evaluation criteria used by lending institutionsa.7.e
8
Manage financial resources to ensure solvencya.8
1. a
  Describe the nature of budgetsa.8.a
2. b
  Explain the nature of operating budgetsa.8.b
3. c
  Describe the nature of cost/benefit analysisa.8.c
4. d
  Determining relationships among total revenue, marginal revenue, output, and profita.8.d
5. e
  Calculate financial ratiosa.8.e
6. f
  Interpret financial statementsa.8.f
7. g
  Describe types of financial statement analysis (e.g., ratio analysis, trend analysis, etc.)a.8.g
8. h
  Spot problems in/issues with financial statementsa.8.h
9
Explain the importance of financial markets in businessa.9
1. a
  Describe the role of financial institutionsa.9.a
2. b
  Explain types of financial markets (i.e., money markets, securities markets, property market, market for risk transfer)a.9.b
10
Explain the nature of assets' valuesa.10
1. a
  Discuss factors that affect the value of an asset (e.g., cash flows, growth rate, timing, inflation, interest rate, opportunity cost, and risk and required return)a.10.a
11
Utilize sources of securities information to make informed financial decisionsa.11
1. a
  Describe sources of securities informationa.11.a
2. b
  Read/Interpret securities tablea.11.b
12
Use debt and equity capital to raise funds for business growtha.12
1. a
  Describe the financial needs of a business at different stages of its developmenta.12.a
2. b
  Discuss factors to consider in choosing between debt and equity capitala.12.b
3. c
  Explain the significance of a firm's capital structurea.12.c

Plan, control, and organize a finance organization/departmentb

1
Explain management's role in business successb.1
2
Utilize planning tools that can guide finance organization's/department's activitiesb.2
1. a
  Explain the nature of business plansb.2.a
2. b
  Explain external planning considerationsb.2.b
3. c
  Identify and benchmark key performance indicators (e.g., dashboards, scorecards, etc.)b.2.c
4. d
  Develop action plansb.2.d
5. e
  Develop business planb.2.e
3
Control a finance organization's/department's activitiesb.3
1. a
  Describe the nature of managerial control (control process, types of control, what is controlled)b.3.a
2. b
  Analyze operating results in relation to budget/industryb.3.b
3. c
  Track performance of business planb..3.c

Employ planning and time management skills and tools to enhance results and complete work tasksc

1
Develop goals and objectivesc.1
2
Prioritize tasks to be completedc.2
3
Develop timelines using time management knowledge and skillsc.3
4
Use project-management skills to improve workflow and minimize costsc.4
5
Implement expense-control strategiesc.5
1. a
  Explain the nature of overhead/operating costsc.5.a
2. b
  Explain employee's role in expense controlc.5.b
3. c
  Control use of suppliesc.5.c
4. d
  Conduct breakeven analysisc.5.d
5. e
  Negotiate service and maintenance contractsc.5.e
6. f
  Negotiate lease or purchase of facilityc.5.f
7. g
  Develop expense control plansc.5.g
8. h
  Use budgets to control operationsc.5.h
6
Maintain property and equipmentc.6
1. a
  Identify routine activities for maintaining business facilities and equipmentc.6.a
2. b
  Plan maintenance programc.6.b

Discuss techniques and strategies used in finance to foster positive, ongoing relationships with customersd

1
Describe characteristics, motivations, and behaviors of finance clientsd.1
1. a
  Describe customer needs and wants that are met by financial products and servicesd.1.a
2. b
  Explain the responsibilities of finance professionals in providing client servicesd.1.b
2
Use Customer Relationship Management technologyd.2
1. a
  Explain the use of databases in customer relationship managementd.2.a

Access, process, maintain, evaluate, and disseminate financial information to assist business decision-makinge

1
Use information literacy skills when accessing, evaluating and disseminating informatione.1
1. a
  Describe the need for financial informatione.1.a
2. b
  Explain the nature and scope of the financial-information management functione.1.b
3. c
  Explain the role of ethics in financial-information managemente.1.c
2
Discuss the importance of accurately reporting a business's financial positione.2
1. a
  Describe the need to accurately report a business's financial positione.2.a
2. b
  Describe the relationship between accounting (with an emphasis on cash flow) and finance (with an emphasis on decision-making)e.2.b
3. c
  Discuss types of accounting systems used to report a business's financial position (i.e., financial, tax, management, cost, accrual)e.2.c
3
Discuss the nature and scope of financial information analysise.3
1. a
  Discuss the impact of economic conditions on financee.3.a
2. b
  Explain the use of financial information to identify trendse.3.b
3. c
  Describe the need to analyze customer financial informatione.3.c
4. d
  Identify reasons to analyze financial data (e.g., to understand accounting treatment, to verify information, to analyze variances, to guide financial decision-making)e.3.d
4
Utilize financial-information technology toolse.4
1. a
  Describe the use of technology in the financial-information management functione.4.a
2. b
  Demonstrate budgeting applicationse.4.b
3. c
  Demonstrate financial analysis applicationse.4.c

Obtain, develop, maintain, and improve a financial product or service mix in order to respond to market opportunitiesf

1
Explain the nature and scope of product/service managementf.1
1. a
  Explain the nature and scope of the product/service management functionf.1.a
2. b
  Identify the impact of product life cycles on business decisionsf.1.b
3. c
  Explain the use of technology in the product/service management functionf.1.c
4. d
  Discuss business ethics in product/service managementf.1.d
2
Develop a financial product/service mixf.2
1. a
  Explain the concept of financial product/service mixf.2.a
2. b
  Describe the nature of financial product/service bundlingf.2.b
3. c
  Identify financial product/service to fill a customer needf.2.c
3
Position financial products/services to acquire desired business imagef.3
1. a
  Describe factors used to position financial products/servicesf.3.a
2. b
  Explain the nature of financial product/service brandingf.3.b
3. c
  Explain the role of customer service in positioning/imagef.3.c
4
Position company to acquire desired business imagef.4
1. a
  Explain the nature of corporate brandingf.4.a
2. b
  Describe factors used by businesses to position corporate brandsf.4.b

Employ financial risk-management strategies and techniques used to minimize business lossg

1
Describe the nature and scope of risk management in financeg.1
1. a
  Explain the role of ethics in risk managementg.1.a
2. b
  Describe the use of technology in risk managementg.1.b
3. c
  Discuss legal considerations affecting risk managementg.1.c
2
Use risk management techniques in financeg.2
1. a
  Discuss the relationship between risk and business objectivesg.2.a
3
Describe risk control methods in financeg.3
1. a
  Discuss the nature of risk control (i.e., internal and external)g.3.a
2. b
  Explain ways to assess riskg.3.b
3. c
  Describe the importance of auditing risk controlg.3.c
4. d
  Discuss risk control systemsg.3.d

Journalizingh

1
Journalize an opening entryh.1
2
Interpret information contained in source documentsh.2
3
Follow principles of double-entry bookkeeping in the journalizing processh.3
4
Record entries in special journalsh.4
5
Toal and post special journalsh.5
6
Adjust for bad debts using direct write off or allowance methodsh.6
7
Analyze transactions involving owners' equityh.7

Postingi

1
Post from special journals to general and subsidiary ledger accountsI.1
2
Demonstrate understanding of multicolumn ledgersI.2
3
Demonstrate familiarity with computerized posting methodsI.3
4
Use appropriate posting referencesI.4
5
Prove accuracy of posting to ensure entries are in-balanceI.5

Payroll Preparationj

1
Calculate employee earnings based on hourly and/or salaried time recordsj.1
2
Enter payroll data in a payroll earnings recordj.2
3
Demonstrate familiarity with electronic payroll data entryj.3
4
Complete a payroll registerj.4
5
Prepare a payroll check and check stub with appropriate informationj.5
6
Record information found on W-4 forms in employee data sectionj.6
7
Demonstrate understanding of payroll taxesj.7
8
Demonstrate understanding of employer payroll liabilitiesj.8
9
Journalize payroll entries at end of earnings period in appropriate journalsj.9
10
Demonstrate understanding of processes and functions of various payroll recordsj.10

Banking and Banking Proceduresk

1
Complete check stubs and checksk.1
2
Enter appropriate data on a deposit slipk.2
3
Reconcile a bank statementk.3
4
Follow-up on outstanding checks, including voiding and/or reissuing checksk.4
5
Demonstrate familiarity with online and electronic banking proceduresk.5
6
Exhibit understanding of credit cards and/or debit cardsk.6

Merchandise Inventoryl

1
Demonstrate knowledge of a merchandise inventory accountl.1
2
Analyze effects on accounts by the purchase of merchandisel.2
3
Analyze effects on accounts by the sale of merchandisel.3
4
Demonstrate the ability to determine the cost of merchandise soldl.4
5
Prepare adjusting entries based on physical inventoryl.5

Completion of Accounting Cyclem

1
Complete 8 or 10 column worksheetm.1
2
Prepare the needed financial statements from a completed worksheetm.2
3
Verify the financial statements against the worksheet for accuracym.3
4
Record and post adjusting and closing entriesm.4
5
Locate and correct accounting errorsm.5
6
Prepare post-closing trial balance from general ledgerm.6

Locating Source Datan

1
Identify uses of business forms used in bookkeeping and/or accountingn.1
2
Locate data from a bookkeeping and/or accounting record or source documentn.2
3
Manipulate electronic data for various bookkeeping and/or accounting purposesn.3

Mechanical and Electronic Accounting Deviceso

1
Demonstrate ability to use calculator, adding machine, and computero.1
2
Demonstrate ability to understand charts and graphso.2
3
Demonstrate familiarity with basic computer terminology0.3
4
Demonstrate basic familiarity with spreadsheet software0.4

Advanced Accounting Practicesp

1
Demonstrate understanding of cash or accrual accountingp.1
2
Demonstrate understanding of departmentalized accountingp.2
3
Demonstrate understanding of terminology relating to accountingp.3
4
Demonstrate entry use to establish and replenish the petty cash fundp.4
5
Apply the various methods of maintaining inventoryp.5
6
Differentiate between proprietorship, partnership, and corporationp.6
7
Demonstrate accounting procedures used in partnershipsp.7
8
Record accounting entries for the installment payment systemsp.8
9
Determine uncollectible accounts through aging of accounts receivablep.9
10
Record bookkeeping entries for distributing dividendsp.10
11
Recognize and understand the concept of goodwillp.11
12
Record entries for research and developmental costsp.12
13
Demonstrate understanding of stocks, dividends, declarations and paymentsp.13
14
Record entries for corporations issuing cash dividendsp.14
15
Analyze and project net yearly incomep.15

Introduction to Accountingq

1
Explain how and why the conceptual framework of accounting and generally accepted accounting principles provide guidance and structure for preparing financial statementsq.1
2
Describe the information provided in each financial statement and how the statements articulate with each otherq.2
3
Identify business ownership structuresq.3
4
Explain the role of management and the auditor in preparing and issuing an annual reportq.4
5
Describe the relationship between assets, liabilities and equity on the balance sheetq.5
6
Identify and explain the classifications within assets, liabilities, and equityq.6
7
Define and calculate the current ratio and debt-equity ratioq.7
8
Describe the information presented in an income statement (See supplement)q.8
9
Calculate return on sales (net profit margin) and return on equityq.9
10
Identify and explain the three phases of the management cycleq.10
11
Identify and explain the four business processesq.11
12
Explain and calculate the operating cycle (accounts receivable turnover and inventory turnover)q.12
13
Explain how internal control procedures are used to safeguard assetsq.13
14
Prepare a bank reconciliation q.14

Accounting Information Systemr

1
Describe the purpose of the accounting systemr.1
2
Describe the purpose of journals and ledgers and their relationshipr.2
3
Analyze and describe how business transactions impact the accounting equationr.3
4
Apply the double-entry system of accounting to record business transactions and prepare a trial balancer.4
5
Explain the need for adjusting entries and record adjusting entriesr.5
6
Prepare the financial statement for the different types of business operations and ownership structuresr.6
7
Explain the purposes of the closing process and record closing entriesr.7
8
Complete the steps in the accounting cycle and prepare financial statements (Practice set)r.8

Accounting for Merchandising Companiess

1
Describe the differences between the periodic and perpetual inventory systemss.1
2
Record business transactions using the periodic inventory system and the perpetual inventory systems.2
3
Describe the difference between the gross price method and the net price methods.3
4
Record business transactions using the gross price method and the net price methods.4
5
Determine cash paid for inventory and operating expensess.5
6
Identify and describe the cost flow assumptions for inventory and explain the impact on the balance sheet and income statements.6
7
Calculate cost of goods sold and ending inventory using LIFO and FIFO inventory costing methodss.7
8
Explain how inventory for a manufacturing business differs from inventory for a merchandising businesss.8
9
Explain how an activity-based costing system operates, including the identification of activity cost pools, and the selection of cost driverss.9
10
Explain the flow of costs through the manufacturing accounts used in product costings.10
11
Compute a predetermined overhead rate, and explain its use in job-order costings.11
12
Determine whether manufacturing overhead is over/under-applieds.12
13
Prepare journal entries to record the costs of direct material, direct labor, and manufacturing overhead in a job-order costing systems.13
14
Prepare a schedule of cost of goods manufactured, a schedule of cost of goods sold, and an income statement for a manufacturers.14

Introduction to Taxest

1
Calculate payroll taxest.1

Accounting for Sales and Accounts Receivableu

1
Describe the criteria used to determine revenue recognitionu.1
2
Record revenue-related transactionsu.2
3
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 statementu.3
4
Record transactions for accounts receivable, including uncollectible accounts, write-offs, and recoveriesu.4

Time Value of Moneyv

1
Determine the present value and future value cash flowsv.1

Accounting for Fixed Assetsw

1
Use net present value concepts to make investment decisionsw.1
2
Explain the purpose and methods of cost allocationw.2
3
Calculate and record depreciation, depletion and amortization and explain the impact on the financial statementsw.3
4
Record the sale and disposal of fixed assets and the impact on the financial statementsw.4

Accounting for Debtx

1
Compare and contrast debt and equity financingx.1
2
Define and calculate TIE (Times-interest-earned ratio)x.2
3
Compare and contrast a periodic payment note payable, a lump-sum note payable, and a periodic and lump-sum note payablex.3
4
Calculate the carrying value, interest expense and cash payment for note payable (periodic payment, lump-sum, periodic and lump-sum) transactionsx.4
5
Record transactions for notes payable: issuance and interest expensex.5
6
Record transactions for bonds issued at face value, a premium and a discountx.6
7
Record interest expense for bonds issued at face value, a premium and a discount using the straight-line method and effective-interest methodx.7

Accounting for Stockholder's Equityy

1
Identify and describe the different classes of stock and explain the rights afforded each class of stocky.1
2
Describe the difference between cash dividends, stock dividends and stock splits, and the impact on the financial statementsy.2
3
Record stock transactions: contributions by owners, corporate distributions (dividends), and the reacquisition of company stocky.3

Financial Statementsz

1
Describe the information provided in an income statement, and the purpose of an income statemz.1
2
Prepare an income statementz.2
3
Explain the difference in net income and income from continuing operations (discontinued operations, extraordinary items)z.3
4
Describe the information provided in a balance sheet and statement of equity, and the purpose of a balance sheet and statement equityz.4
5
Prepare a balance sheet and statement of equityz.5
6
Describe the information provided in statement of cash flows, and the purpose of a statement of cash flowsz.6
7
Prepare a statement of cash flows using the direct methodz.7

Cost-Volume-Profit Analysisaa

1
Identify the activities in the three operating processesaa.1
2
Identify and explain variable costs, fixed costs, and mixed costsaa.2
3
Use high-low analysis to determine variable costs, fixed costs, and mixed costsaa.3
4
Calculate break-even point and perform cost-volume-profit (CVP) analysisaa.4
5
Apply sensitivity analysis to CVP analysisaa.5
6
Determine selling price using sensitivity analysis and CVP analysisaa.6
7
Describe the process of determining selling prices and demonstrate how various strategies are used to determine selling priceaa.7
8
Describe the differences among product and non-product costsaa.8
9
Identify and explain product costs: direct/indirect materials, direct/indirect labor, manufacturing overheadaa.9
10
Record direct materials and direct labor transactionsaa.10
11
Analyze a make-or-buy decisionaa.11
12
Describe the process of determining selling prices and demonstrate how various strategies are used to determine selling priceaa.12

Frequently asked questions

What grade levels do these standards cover?: Grade 9, Grade 10, Grade 11, and Grade 12
Where can I read the official document?: Michigan Center for Career and Technical Education

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