Learning Outcome Statements

1. Quality of Financial Reports

a. demonstrate the use of a conceptual framework for assessing the quality of a company's financial reports;

b. explain potential problems that affect the quality of financial reports;

2. Evaluating the Quality of Financial Reports

c. describe how to evaluate the quality of a company's financial reports;

d. evaluate the quality of a company's financial reports;

3. Indicators of Earnings Quality

e. describe the concept of sustainable (persistent) earnings;

f. describe indicators of earnings quality;

g. explain mean reversion in earnings and how the accruals component of earnings affects the speed of mean reversion;

4. Evaluate the Earnings Quality of a Company

h. evaluate the earnings quality of a company;

5. Cash Flow Quality

i. describe indicators of cash flow quality;

j. evaluate the cash flow quality of a company;

6. Balance Sheet Quality

k. describe indicators of balance sheet quality;

l. evaluate the balance sheet quality of a company;

7. Sources of Information about Risk

m. describe sources of information about risk.