Business (Grades 5–12) Subtest 1

Subarea II. Finance, Accounting, and Computation

0003

Understand business and personal finance.

demonstrating knowledge of the relationships among price, market share, and profitability; factors (e.g., stock prices) that affect corporate finances; and how financial data are used to make business management decisions
demonstrating knowledge of traditional sources of business financing, the role of credit in business, and the use of long-term and short-term credit
demonstrating knowledge of the types and functions of commercial paper, insurance (e.g., property, health, life), secured transactions, and bankruptcy
applying knowledge of different types of budgets and budgeting processes
demonstrating knowledge of the principles and components of personal financial management (e.g., personal budgeting, housing issues, investment, credit management, risk management, taxes) and consumer decision making

0004

Demonstrate knowledge of accounting principles and methods.

demonstrating knowledge of the accounting cycle and the purposes of each component of the cycle
applying accounting principles to calculate various accounting metrics (e.g., assets and liabilities, profit and loss, fixed and variable costs, owners' equity, depreciation, break-even point, return on investment, debt to equity ratio) and to evaluate organizational performance
demonstrating knowledge of how to prepare, interpret, and analyze financial statements using manual and computerized accounting systems

0005

Apply data interpretation and management and computational skills in business contexts.

demonstrating the ability to use data interpretation and management skills, including the ability to acquire, evaluate, organize, maintain, interpret, and communicate information using manual and computer technologies
applying mathematical procedures to analyze and solve business problems, including problems involving taxation, savings and investments, payroll records, cash and credit management, financial statements, purchases, inventory, depreciation, cost-recovery, and depletion
demonstrating the ability to construct, read, interpret, and make inferences from tables, charts, and graphs