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

  • identify sources for obtaining financial reports
  • describe the users and uses of financial information
  • identify the sections in an annual report and the purpose of each section
  • explain the role of management and the auditor in preparing and issuing an annual report
  • identify and explain the types of audit opinions
  • explain the role of accounting and regulatory organizations in relation to financial reports
  • describe the information provided in each financial statement and how the statements articulate with each other
  • describe the relationship between assets, liabilities, and equity on the balance sheet
  • identify and explain the classifications within assets, liabilities, and equity
  • identify the different formats of an income statement
  • identify the classifications in an income statement and explain their relationship to each other (revenue, expense, gains, losses)
  • describe changes in the ownership structure using the statement of equity
  • explain how and why the conceptual framework of accounting and generally accepted accounting principles provide guidance and structure for preparing financial statements
  • describe the different forms of business ownership and the advantages and disadvantages of each form
  • explain how the different forms of business ownership are reported in the financial statements
  • identify the different types of business operations
  • explain how the different types of business operations are reflected in the financial statements
  • identify and explain the business activities reported in a statement of cash flows (operating, investing, financing)
  • define comprehensive income and describe its relationship to operating results
  • describe how disclosure requirements impact financial reporting

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