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Standard 3: Interprets and
creates basic financial statements |
Level 4 Benchmarks (Grades 9-12)
- Understands interrelationships of
financial statements
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- Prepares balance sheets (e.g., balance
total assets with total liabilities plus net
worth)
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- Calculates financial ratios (e.g., gross
profit, net profit, equity, debt ratios;
ratios of expenses to sales; rate of
turnover of inventories)
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- Prepares income statements (e.g., add
gross sales/gross billings and cost of goods
sold, determine gross profit on sales,
deduct expenses, record net profit)
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- Prepares trial balances (i.e., summaries
of ledger account balances used to check the
arithmetical accuracy of ledgers)
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- Uses a variety of journal formats to
journalize business transactions
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- Prepares and utilizes budgets (e.g.,
makes cost and revenue forecasts, track
budget performance, makes appropriate
adjustments)
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