[学习笔记] 【学习笔记】C5 -explain the users and limitations of a balance sheet -id ... [推广有奖]

C5
-explain the users and limitations of a balance sheet
-identify the major,classifications of,balance sheet
-prepare a,classified balance sheet using the report and account formats
-identify the purpose and content of the statement of cash,flows
-prepare a basic statement of cash flows
-understand the usefulness of statement of cash flows
-determine which balance sheet information requires supplemental disclosure
-describe the major disclosure techniques for the balance sheet

balance sheet -statement of financial position
reports the,assets, liabilities and stockholders\' equity of a business enterprise at a specific datw

usefulness
-analysts use the balance sheet to assess w company\'s liquidity, solvency, and financial flexibility

limitations
-historical cost neglect possible gains
-judgments and estimates
-omits many items that cannot be measured reliably

classification
-assets that differ in type or expected funtion in the company\'s central operations or other activities
-assets and liabilities with different implications for the company\'s financial flexibility
-assets and liabilities with different general liquidity charateristics

current assets are cash and other assets a company expected to convert into cash, sell, or consume either in one year or in the operating cycle, whichever is longer
-presented in the balance sheet in order of liquidity

cash and cash equivalents
-cash and investments restricted to current obligations are also included in current assets

short-term investments
debt securities divided into three groups
-held-to-maturity -trading -available-for-sale
trading securities should be reported as current assets others depending on the circumstances(based on management\'s intent, similar condition for other assets and investments)

receivables
should clearly identify any expected loss due to uncollectibles, the amount and nature od any nontrade receivables and anyreceivables used as collateral.for some arising from unusual transactions that cannot be expected to collect within one year, should be excluded from current assets

inventories
measured at the lower of standard cost and net realizable value. net realizable value should less all estimated costs of completion and necessary selling expenses