1. State the objectives of financial reporting.
2. State the qualitative characteristics of accounting information and describe their interrelationships.
3. Define and describe the use of the conventions of comparability and consistency, materiality, conservatism, full disclosure, and cost-benefit.
4. Explain management’s responsibility for ethical financial reporting and define fraudulent financial reporting.
5. Identify and describe the basic components of a classified balance sheet.
6. Prepare multistep and single-step classified income statements.
7. Evaluate liquidity and profitability using classified financial statements.