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CAP Learning Objectives
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Conceptual
  1. Explain the importance of periodic reporting and the time period principle.
  2. Explain the accrual accounting and how it makes financial statements more useful.
  3. Identify the types of adjustments and their purpose.
Analytical
  1. Explain how accounting adjustments link to financial statements.
  2. Compare profit margin and describe its use in analyzing company performance.
  3. Compute the current ratio and describe what it reveals about a company’s financial condition.
Procedural
  1. Prepare and explain adjusting entries.
  2. Explain and prepare an adjusted trial balance.
  3. Prepare financial statements from an adjusted trial balance.





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