Elements of Financial Statements

1. Explain the role of accounting in society.

2. Distinguish among the different accounting entities involved in business events.

3. Name and define the major elements of financial statements.

4. Describe the relationships expressed in the accounting equation.

5. Record business events in general ledger accounts organized under an accounting equation.

6. Explain how the historical cost and reliability concepts affect amounts reported in financial statements.

7. Classify business events as asset source, use, or exchange transactions.

8. Use general ledger account information to prepare four financial statements.

9. Record business events using a horizontal financial statements model.

10. Explain how to use the price-earnings ratio and growth percentage analysis to assess the market value of common stock.

11. Identify three types of business organizations and some of the technical terms they use in their real-world financial reports.