tailieunhanh - Lecture Issues in financial accounting – Lecture 7: Practical issues related to balance sheet and statement of cash flow

In this chapter, the following content will be discussed: Describe the balance sheet in terms of equity and debt capital and producing and operating assets, explain the concept of net income, who owns it and what they can do with it, define the three major activities of a business,. | Practical Issues related to Balance Sheet and Statement of Cash Flow PART II: Corporate Accounting Concepts and Issues Lecture 07 Explain the uses and limitations of a balance sheet. Identify the major classifications of the balance sheet. Prepare a classified balance sheet using the report and account formats. Indicate the purpose of the statement of cash flows. Identify the content of the statement of cash flows. Prepare a statement of cash flows. Understand the usefulness of the statement of cash flows. Determine which balance sheet information requires supplemental disclosure. Describe the major disclosure techniques for the balance sheet. Learning Objectives Balance Sheet Additional Information Usefulness Limitations Classification Supplemental disclosures Techniques of disclosure Balance Sheet and Statement of Cash Flows Statement of Cash Flows Purpose Content and format Preparation Usefulness Balance Sheet, also referred to as the statement of financial position: Reports . | Practical Issues related to Balance Sheet and Statement of Cash Flow PART II: Corporate Accounting Concepts and Issues Lecture 07 Explain the uses and limitations of a balance sheet. Identify the major classifications of the balance sheet. Prepare a classified balance sheet using the report and account formats. Indicate the purpose of the statement of cash flows. Identify the content of the statement of cash flows. Prepare a statement of cash flows. Understand the usefulness of the statement of cash flows. Determine which balance sheet information requires supplemental disclosure. Describe the major disclosure techniques for the balance sheet. Learning Objectives Balance Sheet Additional Information Usefulness Limitations Classification Supplemental disclosures Techniques of disclosure Balance Sheet and Statement of Cash Flows Statement of Cash Flows Purpose Content and format Preparation Usefulness Balance Sheet, also referred to as the statement of financial position: Reports assets, liabilities, and equity at a specific date. Provides information about resources, obligations to creditors, and equity in net resources. Helps in predicting amounts, timing, and uncertainty of future cash flows. Balance Sheet LO 1 Explain the uses and limitations of a balance sheet. Computing rates of return. Evaluating the capital structure. Assess risk and future cash flows. Analyze the company’s: Liquidity, Solvency, and Financial flexibility. Balance Sheet Usefulness of the Balance Sheet LO 1 Explain the uses and limitations of a balance sheet. Most assets and liabilities are reported at historical cost. Use of judgments and estimates. Many items of financial value are omitted. Limitations of the Balance Sheet Balance Sheet LO 1 Explain the uses and limitations of a balance sheet. Classification LO 2 Identify the major classifications of the balance sheet. Balance Sheet Illustration 5-1 In practice you usually see little departure from these major subdivisions. Balance Sheet .