Learning Outcome Statements

1. Components and Format of the Balance Sheet

a. describe the elements of the balance sheet: assets, liabilities, and equity;

b. describe uses and limitations of the balance sheet in financial analysis;

c. describe alternative formats of balance sheet presentation;

d. distinguish between current and non-current assets, and current and non-current liabilities;

2. Measurement Bases of Assets and Liabilities

e. describe different types of assets and liabilities and the measurement bases of each;

3. Financial Instruments: Financial Assets and Financial Liabilities

e. describe different types of assets and liabilities and the measurement bases of each;

4. Equity

f. describe the components of shareholders' equity;

5. Uses and Analysis of the Balance Sheet

g. convert balance sheets to common-size balance sheets and interpret common-size balance sheets;

h. calculate and interpret liquidity and solvency ratios.