|Investing and Financing Decisions and the Balance Sheet|
1. Define the objective of financial reporting, the elements of the balance sheet, and the related key accounting assumptions and principles.
2. Identify what constitutes a business transaction and recognize common balance sheet account titles used in business.
3. Apply transaction analysis to simple business transactions in terms of the accounting model: Assets = Liabilities + Stockholders' Equity.
4. Determine the impact of business transactions on the balance sheet using two basic tools, journal entries and T-accounts.
5. Prepare a simple classified balance sheet and analyze the company using the current ratio.
6. Identify investing and financing transactions and demonstrate how they are reported on the statement of cash flows.