Foundations of Financial Accounting

Distinguish between cash-basis and accrual-basis accounting and apply the revenue and expense recognition principles.

Classify business transactions into assets, liabilities, and equity to construct a balance sheet.

Construct an income statement and a statement of cash flows (indirect method) from transactional data.

Analyze the articulation between the three core financial statements (balance sheet, income statement, statement of cash flows).

Analyze a firm's financial health by evaluating its liquidity, solvency, and profitability ratios.

Critique the limitations of financial statement analysis, including the impact of accounting choices and off-balance-sheet items.