# CTE Resource Center - Verso - Accounting, Advanced Related NBEA Achievement Standards for Accounting

CTE Resource Center - Verso

Virginia’s CTE Resource Center

Related NBEA Achievement Standards for Accounting

NBEA Achievement Standards for Accounting

NBEA (National Business Education Association) standards have been correlated to ensure that students and adults are afforded equal access to fundamental business knowledge and skills and, therefore, an equal opportunity for success in life" (National Standards for Business Education, NBEA, 2007).

Analyze cash flow from operating activities to assess profitability and liquidity.

 

Apply differential analysis to make the following types of decisions: make or buy a product; lease or buy an asset; discontinue a department, plant, or product; offer discounted prices on special orders; replace or repair equipment.

  
 

Apply information technology to conduct financial analysis.

 

Assess the financial condition and operating results of a company and analyze and interpret financial statements and information to make informed business decisions.

 

Calculate the cost of borrowed funds and determine the impact on the financial statements.

 

Describe career opportunities in the accounting profession.

 

Describe how accounting information facilitates management decision-making.

 

Describe how current events impact the accounting profession.

 

Describe the criteria used to determine expense recognition.

 

Describe the criteria used to determine revenue recognition.

 

Describe the different forms of business ownership and the advantages and disadvantages of each form.

 

Describe the ethical and legal implications resulting from the manipulation of financial statements and financial ratios.

  

Describe the impact of technology on the accounting process.

 

Describe the methods and criteria used to account for investments and their impact on the financial statements.

 

Determine the cost of inventory for merchandising and manufacturing businesses and apply appropriate valuation methods.

  

Determine the costs of property, plant and equipment, natural resources, and intangible assets.

 

Determine the impact on the financial statements when assets are sold, disposed, or rendered obsolete.

 

Develop an understanding and working knowledge of an annual report and financial statements.

 

Differentiate between stock splits and stock dividends and explain how each affects equity.

 

Distinguish between expenses and losses.

  
 

Distinguish between revenue and gains.

 

Distinguish between the accrual basis of accounting and the cash basis of accounting and discuss the impact each has on the financial statements.

 

Evaluate company performance by applying standard costing and variance analysis.

  

Explain and compare the behavior of fixed, variable, and mixed costs.

  

Explain how operating results, capital contributions, and distribution of earnings affect equity for the various types of ownership structures.

 

Explain how the different forms of business ownership are reported in the financial statements.

 

Explain how the different types of business operations are reflected in the financial statements.

 

Explain how to use activity-based costing and why it is used.

 

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.

 

Explain the difference between the periodic and perpetual inventory methods.

 

Explain the purpose of cost allocation.

 

Identify and apply appropriate information technology to the accounting system.

 

Identify and apply internal control procedures used to safeguard assets and ensure the integrity of the accounting information system.

 

Identify and describe generally accepted accounting principles (GAAP), and explain how the application of GAAP impacts the recording of financial transactions and the preparation of financial statements.

  

Identify and describe the cost flow assumptions for inventory and explain the impact on the balance sheet and income statement.

 

Identify and explain the business activities reported in a statement of cash flows (operating, investing, financing).

 

Identify sources for obtaining financial reports.

 

Identify the classifications in an income statement and explain their relationship to each other (revenue, expense, gains, losses).

   

Identify the different types of business operations.

 

Perform a horizontal and vertical analysis of the income statement and balance sheet.

 

Recognize the primary areas of analysis (trend analysis, profitability, liquidity, capital structure) and explain the information that can be obtained from each type of analysis.

 

Record equity-related transactions.

 

Record revenue-related transactions.

 

Record transactions for accounts payable and other short-term debt.

 

Record transactions for accounts receivable, including uncollectible accounts, write-offs, and recoveries.