Financial Accounting

CHAPTER 2

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Financial Statements and the Annual Report

OVERVIEW OF EXERCISES, PROBLEMS, AND CASES

Estimated

Time in

Learning Objective Exercises Minutes Level

1. Describe the objectives of financial reporting.

2. Describe the qualitative characteristics of accounting information. 1 10 Easy

3. Explain the concept and purpose of a classified balance sheet 2 10 Easy

and prepare the statement. 9* 10 Mod

4. Use a classified balance sheet to analyze a company's

financial position.

5. Explain the difference between a single-step and a multiple-step 3 10 Easy

income statement and prepare each type of income statement. 4 10 Mod

9* 10 Mod

10* 5 Easy

11* 15 Mod

6. Use a multiple-step income statement to analyze a 5 10 Easy

company’s operations. 10* 5 Easy

11* 15 Mod

7. Identify the components of the statement of retained earnings

and prepare the statement. 6 10 Mod

9* 10 Mod

8. Identify the components of the statement of cash flows and 7 10 Easy

prepare the statement.

9. Read and use the financial statements and other elements in the 8 20 Diff

annual report of a publicly held company.

*Exercise, problem, or case covers two or more learning objectives

Level = Difficulty levels: Easy; Moderate (Mod); Difficult (Diff)

Problems Estimated

and Time in

Learning Objective Alternates Minutes Level

1. Describe the objectives of financial reporting. 15* 45 Diff

2. Describe the qualitative characteristics of accounting information. 1 15 Diff 2 15 Mod 11* 35 Mod 12* 20 Mod

3. Explain the concept and purpose of a classified balance sheet 3 50 Mod

and prepare the statement. 13* 60 Mod

4. Use a classified balance sheet to analyze a company's 4 20 Easy

financial position. 5 15 Mod 11* 35 Mod 14* 35 Mod 15* 45 Diff

5. Explain the difference between a single-step and a multiple-step 6 30 Mod

income statement and prepare...