Students earning the HSB Principles of Finance badge have demonstrated knowledge and skills in areas that include accounting, finance, understanding financial statements, corporate investments, calculating financial ratios, corporate financial management, operating and overhead costs, internal accounting controls, cost/benefit analysis and financial planning and decision making.

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Instructional Area: Financial Analysis (FI)

Performance Element: Understand the fundamental principles of money needed to make financial exchanges.

Performance Indicators:
FI:062 Explain the time value of money (CS)

Performance Element: Acquire a foundational knowledge of accounting to understand its nature and scope.

Performance Indicators:
FI:579 Describe the need for financial information (CS) LAP-FI-579
FI:085 Explain the concept of accounting (CS) LAP-FI-085
FI:351 Discuss the role of ethics in accounting (SP) LAP-FI-351

Performance Element: Implement accounting procedures to track money flow and to determine financial status.

Performance Indicators:
FI:091 Describe the nature of cash flow statements (SP) LAP-FI-091
FI:092 Prepare cash flow statements (MN)
FI:093 Explain the nature of balance sheets (SP) LAP-FI-093
FI:094 Describe the nature of income statements (SP) LAP-FI-094

Performance Element: Acquire a foundational knowledge of finance to understand its nature and scope.

Performance Indicators:
FI:354 Explain the role of finance in business (CS) LAP-FI-354
FI:355 Discuss the role of ethics in finance (SP) LAP-FI-355

Performance Element: Manage financial resources to ensure solvency.

Performance Indicators:
FI:106 Describe the nature of budgets (SP) LAP-FI-106
FI:098 Explain the nature of operating budgets (SU)
FI:357 Describe the nature of cost-benefit analysis (MN) LAP-FI-357
FI:358 Determine relationships among total revenue, marginal revenue, output, and profit (MN)
FI:097 Calculate financial ratios (MN)
FI:102 Interpret financial statements (MN)
FI:238 Calculate the time value of money (SP)
FI:334 Describe types of financial statement analysis (e.g., ratio analysis, trend analysis, etc.) (MN)
FI:541 Interpret cash-flow statements (SP)

Performance Element: Use debt and equity capital to raise funds for business growth.

Performance Indicators:
FI:340 Discuss factors to consider in choosing between debt and equity capital (MN)
FI:341 Explain the significance of a firm's capital structure (MN)

Performance Element: Classify, record, and summarize data to produce needed financial information.

Performance Indicators:
FI:342 Discuss the nature of the accounting cycle (CS)
FI:673 Distinguish among types of business transactions (CS)
FI:378 Demonstrate the effects of transactions on the accounting equation (CS)

Performance Element: Perform specialized accounting procedures to track cash flow.

Performance Indicators:
FI:642 Discuss the nature of long-term assets (e.g., tangible assets, intangible assets, natural resources, etc.) (SP)

Performance Element: Use short-term financial management to manage current assets and liabilities.

Performance Indicators:
FI:513 Describe the nature of short-term financial management (SP)

Performance Element: Analyze finances to assist in capital budgeting decision-making.

Performance Indicators:
FI:078 Explain the nature of capital investment (SP)

Performance Element: Implement suitable internal accounting controls to ensure the proper recording of financial transactions.

Performance Indicators:
FI:343 Explain the purpose of internal accounting controls (SP) LAP-FI-343

Instructional Area: Operations (OP)

Performance Element: Implement expense-control strategies to enhance a business's financial wellbeing.

Performance Indicators:
OP:024 Explain the nature of overhead/operating costs (SP) LAP-OP-024
OP:192 Conduct breakeven analysis (MN)
OP:029 Develop expense control plans (MN)