Standard 2 : Develop an understanding of basic accounting and economic principles.



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General Information

Number: MA.912.FL.2
Title: Develop an understanding of basic accounting and economic principles.
Type: Standard
Subject: Mathematics (B.E.S.T.)
Grade: 912
Strand: Financial Literacy

Related Benchmarks

This cluster includes the following benchmarks
Code Description
MA.912.FL.2.1: Given assets and liabilities, calculate net worth using spreadsheets and other technology.
Clarifications:
Clarification 1: Instruction includes net worth for a business and for an individual. 

Clarification 2: Instruction includes understanding the difference between a capital asset and a liquid asset.

Clarification 3: Instruction includes displaying net worth over time in a table or graph.

MA.912.FL.2.2: Solve real-world problems involving profits, costs and revenues using spreadsheets and other technology.
Clarifications:
Clarification 1: Instruction includes the connection to data. 

Clarification 2: Instruction includes displaying profits and costs over time in a table or graph and using the graph to predict profits. 

Clarification 3: Problems include maximizing profits, maximizing revenues and minimizing costs.

MA.912.FL.2.3: Explain how consumer price index (CPI), gross domestic product (GDP), stock indices, unemployment rate and trade deficit are calculated. Interpret their value in terms of the context.
Clarifications:
Clarification 1: Instruction includes the understanding that quantities are based on data and may include measurement error.
MA.912.FL.2.4: Given current exchange rates, convert between currencies. Solve real-world problems involving exchange rates.
Clarifications:
Clarification 1: Instruction includes taking into account various fees, such as conversion fee, foreign transaction fee and dynamic concurrency conversion fee.
MA.912.FL.2.5: Develop budgets that fit within various incomes using spreadsheets and other technology.
Clarifications:
Clarification 1: Instruction includes budgets for a business and for an individual. 

Clarification 2: Instruction includes taking into account various cash management strategies, such as checking and savings accounts, and how inflation may affect these strategies.

MA.912.FL.2.6: Given a real-world scenario, complete and calculate federal income tax using spreadsheets and other technology.
Clarifications:
Clarification 1: Instruction includes understanding the difference between standardized deductions and itemized deductions. 

Clarification 2: Instruction includes the connection to piecewise linear functions with slopes relating to the marginal tax rates.



Related Access Points

This cluster includes the following access points.

Access Points

Access Point Number Access Point Title
MA.912.FL.2.AP.2: Calculate the profit when given the expenses and revenue from a real-world problem.
MA.912.FL.2.AP.3: Given the consumer price index (CPI), stock indices, or unemployment rates for two different time periods, identify whether the rates are increasing or decreasing.
MA.912.FL.2.AP.4: Given current exchange rates, convert between currencies.
MA.912.FL.2.AP.5: Given typical monthly expenses (housing, utilities, food, etc.), determine the monthly income needed.
MA.912.FL.2.AP.6: Given a paycheck, identify the taxes taken out.


Related Resources

Vetted resources educators can use to teach the concepts and skills in this topic.

Lesson Plans

Name Description
Cost of Living:

Students will create budgets to compare the cost of living in two different locations.

Marketing Mix: Price Setting:

Using the case study, "Colossal Cookie Profit Dilemma," students will identify pricing objectives for Ella’s business and they will discuss various factors business owners must consider when setting prices for the products. Students will select one of the pricing strategies and calculate the price for one of Ella’s cookies.

What are my options?:

Using the case study, Drowning in Debt: Making Healthy Decisions to Manage Money, students will consider various actions a consumer can take to minimize expenses and budget their money.

Big Dreams on a Budget:

Using the case study, “Big Dreams on a Budget” students will create a financial plan to purchase a home. Students will research the current market and apply it to the case study. From the perspective of a financial advisor, they will draft a financial plan to fit the scenario. Students will be given case study-specific financials to help develop a plan.

Balanced Budgets:

Students will create and format spreadsheets to build a balanced budget for personal and business situations using income and expenses, in this lesson.

Budgeting: Finding Personal Financial Success:

During this lesson, students will learn about budgets, checking and savings accounts, and interest. They will then have a research activity to focus on their future lives, which they will use to create a budget for their lives after they have finished their education and/or job training. This budget will be created using a spreadsheet or other technology to explore how various factors, such as interest rates, will affect their budget and necessary income.