Standard: Understands business’s responsibility to know, abide by, and enforce laws and regulations that affect business operations and transactions
Performance Element: Understand government regulations pertaining to the finance industry to protect the company wellbeing.
Performance Indicators:
Discuss the effect of tax laws and regulations on financial transactions (BL:134) (SP)
Performance Element: Implement compliance measures in accounting to adhere to regulatory requirements.
Performance Indicators:
Explain financial disclosure regulations and policies (BL:153) (SP)
Comply with financial reporting and internal control regulations in accounting (BL:088) (SP)
Discuss state regulation of the accounting industry (BL:090) (SP)
Comply with state regulations (BL:154) (SP)
Standard: Understands tools, strategies, and systems used to maintain, monitor, control, and plan the use of financial resources
Performance Element: Acquire a foundational knowledge of accounting to understand its nature and scope.
Performance Indicators:
Describe the need for financial information (FI:579, LAP-FI-579) (CS)
Explain the concept of accounting (FI:085, LAP-FI-085) (CS)
Discuss the role of ethics in accounting (FI:351, LAP-FI-351) (SP)
Explain the use of technology in accounting (FI:352) (SP)
Explain legal considerations for accounting (FI:353) (SP)
Performance Element: Implement accounting procedures to track money flow and to determine financial status.
Performance Indicators:
Describe the nature of cash flow statements (FI:091, LAP-FI-091) (SP)
Prepare cash flow statements (FI:092) (MN)
Explain the nature of balance sheets (FI:093, LAP-FI-093) (SP)
Describe the nature of income statements (FI:094, LAP-FI-094) (SP)
Performance Element: Utilize sources of securities information to make informed financial decisions.
Performance Indicators:
Explain the nature of statements of changes in equity (FI:630) (SP)
Performance Element: Manage financial resources to ensure solvency.
Performance Indicators:
Describe the nature of budgets (FI:106, LAP-FI-106) (SP)
Explain the nature of operating budgets (FI:098) (SU)
Describe the nature of cost-benefit analysis (FI:357, LAP-FI-357) (MN)
Develop company’s/department’s budget (FI:099, LAP-FI-099) (MN)
Interpret financial statements (FI:102) (MN)
File business tax returns (FI:652) (ON)
Verify the accuracy of business financial records (FI:653) (ON)
Describe types of financial statement analysis (e.g., ratio analysis, trend analysis) (FI:334) (MN)
Discuss limitations of using financial statements to assess business performance (FI:655) (MN)
Spot problems in/issues with financial statements (FI:335) (MN)
Performance Element: Classify, record, and summarize data to produce needed financial information.
Performance Indicators:
Discuss the nature of the accounting cycle (FI:342) (CS)
Distinguish among types of business transactions (FI:673) (CS)
Distinguish among types of business documentation (FI:674) (CS)
Demonstrate the effects of transactions on the accounting equation (FI:378) (CS)
Prepare a chart of accounts (FI:379) (CS)
Explain the nature of special journals (FI:407) (CS)
Journalize business transactions (FI:381) (CS)
Post journal entries to general ledger accounts (FI:382) (CS)
Prepare a trial balance (FI:383) (CS)
Journalize and post adjusting entries (FI:384) (CS)
Journalize and post closing entries (FI:385) (CS)
Prepare a post-closing trial balance (FI:386) (CS)
Identify and correct accounting errors (FI:675) (SP)
Prepare worksheets (FI:387) (SP)
Performance Element: Maintain cash controls to track cash flow.
Performance Indicators:
Explain cash control procedures (e.g., signature cards, deposit slips, internal/external controls, cash clearing, etc.) (FI:113) (CS)
Reconcile cash (FI:396) (CS)
Account for petty cash (FI:676) (CS)
Account for cash receipts (e.g., record cash, record income) (FI:677) (CS)
Account for cash payments (e.g., record cash, record expenses) (FI:678) (CS)
Performance Element: Perform accounts payable functions to record, control, and disburse payments to vendors.
Performance Indicators:
Explain the nature of accounts payable (FI:409) (CS)
Account for purchases (e.g., purchase requisitions, purchase orders, invoices, vouchers) (FI:679) (CS)
Process accounts payable (e.g., maintain vendor file, post to ledger, process invoices and checks) (FI:680) (SP)
Manage accounts payable (FI:681) (MN)
Performance Element: Perform accounts receivable functions to record, control, and collect payments due from the sale of goods and services.
Performance Indicators:
Explain the nature of accounts receivable (FI:424) (CS)
Account for sales (e.g., invoices, sales receipts, etc.) (FI:682) (CS)
Process accounts receivable (e.g., post to ledger, process payment, process uncollectible account, etc.) (FI:683) (SP)
Manage accounts receivable (FI:684) (MN)
Performance Element: Maintain inventory records to track the location, quantity, and value of goods and services.
Performance Indicators:
Record inventory transactions (FI:432) (CS)
Process inventory adjustments (e.g., shrinkage, obsolescence, returns, etc.) (FI:435) (CS)
Explain methods used to value inventory (e.g., FIFO, LIFO, average cost, etc.) (FI:586) (CS)
Determine the cost/value of inventory (FI:436) (SP)
Performance Element: Complete payroll procedures to calculate, record, and distribute payroll.
Performance Indicators:
Explain the nature of payroll expenses (e.g., Social Security tax, Medicare tax, FUTA, SUTA, workers’ compensation) (FI:638) (CS)
Maintain employee earnings records (e.g., timecards, time sheets, etc.) (FI:134) (CS)
Calculate employee earnings (FI:438) (SP)
Calculate employee deductions (FI:439) (SP)
Calculate payroll taxes (FI:442) (SP)
Account for payroll transactions (e.g., earnings, taxes, benefits, other deductions) (FI:686) (SP)
Process payroll payments and remittances (e.g., employees, benefits, taxes) (FI:687) (SP)
Prepare federal, state, and local payroll tax returns and reports (FI:443) (SP)
Manage staff payroll (FI:688) (MN)
Performance Element: Perform specialized accounting procedures to track cash flow.
Performance Indicators:
Discuss the nature of long-term assets (e.g., tangible assets, intangible assets, natural resources) (FI:642) (SP)
Describe the methods used to value long-term assets (e.g., tangible assets, intangible assets, natural resources, etc.) (FI:690) (SP)
Account for long-term assets (e.g., record acquisition, record depreciation/amortization, record disposal) (FI:691) (SP)
Account for long-term liabilities (e.g., bonds payable, notes payable, leases, etc.) (FI:692) (SP)
Account for provisions (e.g., restructurings, warranties, customer refunds, etc.) (FI:693) (SP)
Develop an estimate for provisions (FI:694) (MN)
Performance Element: Calculate business ratios to evaluate company performance.
Performance Indicators:
Determine business liquidity (FI:551) (MN)
Calculate activity/efficiency ratios (FI:552) (MN)
Calculate debt/leverage ratios (FI:553) (MN)
Calculate financial risk ratios (FI:695) (MN)
Calculate business profitability (FI:554) (MN)
Calculate market ratios (FI:555) (MN)
Discuss the use of benchmarks when analyzing ratios (FI:556) (MN)
Describe bankruptcy prediction models (FI:557) (MN)
Apply bankruptcy prediction models (FI:395) (MN)
Performance Element: Perform tax accounting functions to lessen clients’ tax burdens.
Performance Indicators:
Explain record keeping procedures for tax accounting (FI:484) (SP)
Calculate taxes owed by clients (i.e., individual and business) (FI:696) (SP)
Account for taxes (FI:697) (SP)
Prepare tax returns for clients (i.e., individuals and business) (FI:698) (SP)
Identify tax issues for clients (FI:485) (SP)
Recommend tax strategies based on clients’ financial goals (FI:487) (MN)
Analyze business tax returns (FI:699) (MN)
Performance Element: Perform accounting functions specific to a partnership to classify, record, and summarize business data.
Performance Indicators:
Analyze a partnership agreement (FI:463) (MN)
Account for partnership capital investments and withdrawals (FI:700) (MN)
Allocate profits and losses to the partners (FI:464) (MN)
Account for significant partnership changes (e.g., admission of new partner, withdrawal of partner, etc.) (FI:701) (MN)
Prepare partnership financial schedules (e.g., K-1) (FI:702) (MN)
Performance Element: Perform accounting functions specific to a corporation to classify, record, and summarize corporate data.
Performance Indicators:
Analyze the articles of incorporation needed to start a corporation (FI:472) (MN)
Explain methods to account for the issuance of equity (FI:471) (MN)
Account for the issuance of equity (FI:703) (MN)
Compute common stock outstanding after stock transaction occurs (e.g., stock buybacks, preferred stock conversions, stock option exercises, stock dividends, stock splits, etc.) (FI:473) (MN)
Compute dividends payable on stock (FI:474) (MN)
Account for equity transactions (e.g., cash dividend, stock dividend, treasury stock, etc.) (FI:704) (MN)
Calculate earnings-per-share (FI:705) (MN)
Performance Element: Understand the fundamentals of managerial accounting to aid in financial decision-making.
Performance Indicators:
Describe types of costs used in managerial accounting (e.g., direct cost, indirect cost, sunk cost, differential cost) (FI:658) (SP)
Describe marginal analysis techniques and applications (FI:659) (SP)
Explain the nature of managerial accounting (FI:660) (SP)
Discuss the use of variance analysis in managerial accounting (FI:661) (SP)
Discuss the nature of cost accounting budgets (FI:662) (SP)
Discuss the nature of cost allocation (FI:663) (SP)
Differentiate among management accounting responsibility centers (i.e., cost, profit, investment, revenue) (FI:717) (SP)
Discuss the use of cost-volume-profit analysis (FI:718) (SP)
Discuss cost accounting systems (e.g., job costing, process costing, standard costing, activity-based costing [ABC]) (FI:719) (SP)
Distinguish between variable costing and absorption costing (FI:720) (SP)
Describe common management accounting performance measures (e.g., balanced scorecard, return on investment [ROI], customer profitability analysis, etc.) (FI:721) (SP)
Discuss the role of standard costing in the preparation and analysis of budgets (FI:722) (SP)
Describe the nature of flexible budgets (FI:723) (SP)
Explain the role of transfer pricing in managerial accounting (FI:724) (SP)
Explain the impact of business operational practices (e.g., total quality management [TQM], lean production, just-in-time [JIT], etc.) on managerial accounting (FI:725) (SP)
Performance Element: Produce financial reports to communicate the results of business activity.
Performance Indicators:
Discuss the nature of annual reports (FI:388) (SP)
Analyze transactions and accounts (e.g., purchase, sales, sales returns and allowances, uncollectible accounts, depreciation, debt) (FI:449) (SP)
Prepare income statements (FI:149) (MN)
Prepare statements of changes to equity (FI:392) (MN)
Prepare balance sheets (FI:393) (MN)
Prepare notes to financial statements (FI:709) (MN)
Prepare management discussion and analysis (FI:710) (MN)
Discuss the nature of consolidated financial statements (FI:470) (MN)
Explain the consolidation elimination process (FI:711) (MN)
Complete a worksheet for a corporation (FI:476) (MN)
Prepare consolidated financial statements (FI:712) (MN)
Performance Element: Implement suitable internal accounting controls to ensure the proper recording of financial transactions.
Performance Indicators:
Explain the purpose of internal accounting controls (FI:343, LAP-FI-343) (SP)
Assess financial accounting fraud risk (FI:706) (SP)
Determine the components of internal accounting control procedures for a business (FI:479) (SP)
Maintain internal accounting controls (FI:480) (SP)
Assess the effectiveness of internal accounting controls (FI:707) (MN)
Develop internal accounting control procedures (FI:708) (MN)
Performance Element: Conduct an audit to verify the integrity of a business’s financial reporting process, accounting functions, and internal controls.
Performance Indicators:
Explain the nature of audits and assurance engagements (FI:344) (SP)
Distinguish between internal and external audits (FI:713) (SP)
Describe auditing techniques/procedures (FI:714) (SP)
Conduct audit engagements (FI:482) (SP)
Discuss the requirements to consider fraud in financial statement audits (FI:481) (MN)
Plan audit engagements (FI:715) (MN)
Review audit evidence (FI:716) (MN)
Prepare auditing reports (FI:483) (MN)
Performance Element: Utilize managerial accounting methods to track, record, and analyze business costs.
Performance Indicators:
Maintain job order cost sheets (FI:450) (SP)
Calculate the cost of goods sold (FI:451) (SP)
Apply cost accounting techniques (e.g., job costing, process costing, standard costing, activity-based costing [ABC]) (FI:726) (SP)
Perform cost allocation functions (FI:458) (MN)
Prepare cost of production reports (FI:459) (MN)
Develop costs per unit of product (FI:455) (MN)
Calculate variances (FI:456) (MN)
Conduct variance analysis (FI:457) (MN)
Conduct marginal analysis (FI:588) (MN)
Conduct cost-volume-profit analysis (FI:454) (MN)
Determine relevant cost and revenue data for decision-making purposes (FI:462) (MN)
Calculate relevant costs for decision making (e.g., opportunity costs, out-of-pocket costs) (FI:727) (MN)
Performance Element: Prepare budget reports to make business decisions.
Performance Indicators:
Explain types of budgeting systems (e.g., top-down, bottom-up, incremental, etc.) (FI:728) (SP)
Project future revenues and expenses (FI:394) (SP)
Process preliminary budget detail (FI:460) (SP)
Prepare budget statements (e.g., overhead, production, operating, capital expenditure, cash) (FI:461) (MN)
Produce budgeted financial statements (e.g., income statement, balance sheet, cash flows) (FI:685) (MN)
Measure cost-effectiveness of expenditures (FI:689) (MN)
Standard: Understands tools, strategies, and systems needed to access, process, maintain, evaluate, and disseminate information to assist business decision-making
Performance Element: Utilize technology to record and analyze accounting transactions.
Performance Indicators:
Use accounting applications and systems (NF:225) (CS)
Describe the nature of Extensible Business Reporting Language (XBRL) (NF:226) (SP)
Integrate technology into accounting (NF:133) (SP)
Preserve automated accounting records (NF:227) (SP)
Performance Element: Apply statistical data analysis methods to aid in business data interpretation.
Performance Indicators:
Select confidence levels (NF:228) (SP)
Test data for definitive relationships (NF:229) (SP)
Test data for definitive associations (NF:230) (SP)
Test data for meaningful differences (NF:231) (SP)
Use statistical data inferences to draw preliminary conclusions (NF:232) (SP)
Identify types of data analysis modeling techniques (NF:233) (SP)
Apply mathematical data analysis modeling techniques (NF:234) (SP)
Use data analysis software (NF:235) (SP)
Performance Element: Interpret research data into information for business decision-making.
Performance Indicators:
Explain the use of descriptive statistics in business decision making (NF:236) (SP)
Interpret descriptive statistics for business decision making (NF:237) (SP)
Interpret business data correlations (NF:238) (SP)
Draw conclusions on the research question/issue (NF:239) (SP)
Standard: Understands the processes and systems implemented to monitor, plan, and control the day-to-day activities required for continued business functioning
Performance Element: Develop an understanding of business analysis to improve business functions and activities.
Performance Indicators:
Discuss the connection between business analysis and business process management (OP:328) (SP)
Explain types of requirements (e.g., business, system, functional, nonfunctional) (OP:329) (SP)
Performance Element: Implement expense-control strategies to enhance a business’s financial wellbeing.
Performance Indicators:
Explain the nature of overhead/operating costs (OP:024, LAP-OP-024) (SP)
Conduct break-even analysis (OP:192) (MN)
Develop expense control plans (OP:029) (MN)
Use budgets to control operations (OP:030) (MN)
Performance Element: Analyze business processes to improve business performance.
Performance Indicators:
Document business processes (OP:457) (SP)
Identify the business process problem/issue (OP:458) (SP)
Define data needs and limitations (e.g., data fields, constraints, assumptions, variations expectations) (OP:459) (SP)
Identify data acquisition strategies (OP:460) (SP)
Analyze business processes (e.g., measure efficiency, benchmark metrics) (OP:461) (SP)
Recommend improvements to business processes (OP:462) (SP)
Standard: Understands concepts, tools, and strategies used to explore, obtain, and develop in a business career
Performance Element: Understand careers in accounting to determine which role and responsibilities best match personal abilities and traits.
Performance Indicators:
Identify career opportunities in accounting (PD:337) (SP)
Explain the roles and responsibilities of accounting professionals (PD:338) (SP)
Performance Element: Explore career-advancement activities in the accounting industry to enhance professional development.
Performance Indicators:
Discuss professional designations for accountants (e.g., CPA, CMA, CIA, CFE, etc.) (PD:168) (SP)
Describe the services of professional organizations in accounting (PD:339) (SP)
Performance Element: Acquire knowledge of accounting standards to record, report, and evaluate financial data appropriately.
Performance Indicators:
Explain the nature of accounting standards (PD:158) (CS)
Discuss the roles and responsibilities of accounting-standards-setting bodies (i.e., SEC, FASB, IASB, GASB) (PD:295) (SP)
Compare U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) (PD:296) (SP)
Discuss the levels and types of external financial reporting (PD:340) (SP)
Performance Element: Acquire knowledge of auditing standards to attest to the integrity of a business’s finances.
Performance Indicators:
Discuss the nature of auditing/attestation standards (PD:341) (SP)
Standard: Understands tools, strategies, and systems needed to access, process, maintain, evaluate, and disseminate financial information to assist business decision-making
Performance Element: Acquire foundational knowledge of financial-information management to understand its scope and nature.
Performance Indicators:
Explain the role of ethics in financial-information management (FM:003) (SP)
Performance Element: Utilize financial information technology tools to manage financial information and perform work responsibilities.
Performance Indicators:
Demonstrate budgeting applications (FM:013) (SP)
Performance Element: Acquire foundational knowledge of financial information analysis to aid in financial decision-making.
Performance Indicators:
Discuss non-traditional uses for financial information (e.g., lean, sustainability reporting, activity-based costing [ABC], six sigma) (FM:016) (SP)