Before this course, the preparation of a balance sheet might appear as a routine task, yet its complexity in conveying a business's financial position is often underestimated. This course acts as a bridge, leading from a basic understanding of balance sheet preparation to a comprehensive mastery of its nuances. After completing the course, participants will have transitioned from general knowledge to an in-depth understanding of various balance sheet formats, asset classifications, and liability types. The course covers the detailed preparation process, including the categorization of current and long-term assets and liabilities, and the proper presentation of equity line items. It also delves into the structure of the statement of retained earnings and the applicability of balance sheet ratios. This transformation is essential for accountants, enhancing their ability to prepare detailed and informative balance sheets, thereby providing a clear and accurate picture of a business's financial standing.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Chapter 1
Identify which assets are usually classified as current or long-term on the balance sheet.
Note which liabilities are usually classified a current or long-term on the balance sheet.
Recognize the steps required to manually construct a balance sheet.
Chapter 2
Note the types of assets that can be classified into each of the major asset categories.
Chapter 3
Recognize the different types of liabilities that may appear on the balance sheet.
Cite the decision points related to how a loan should be classified if the lender can call the loan.
Chapter 4
Describe the proper presentation of each equity line item on the balance sheet.
Chapter 5
Describe the structure of the statement of retained earnings.
Chapter 6
Note the instances in which different balance sheet ratios may apply to a business.
Major Topics
Overview of the Balance Sheet
Asset Line Items on the Balance Sheet
Liability Line Items on the Balance Sheet
Equity Line Items on the Balance Sheet
Statement of Retained Earnings
Balance Sheet Ratio Analysis
