Assessriskandfuturecashflows analyzethecompanys

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Unformatted text preview: Sheet Evaluating the capital structure. Assess risk and future cash flows. Analyze the company’s: Solvency, and Chapter 5- 5 Liquidity, Financial flexibility. LO 1 Explain the uses and limitations of a balance sheet. Balance Sheet Balance Sheet Limitations of the Balance Sheet Most assets and liabilities are reported at historical cost. Use of judgments and estimates. Many items of financial value are omitted. Chapter 5- 6 LO 1 Explain the uses and limitations of a balance sheet. Balance Sheet Balance Sheet Classification in the Balance Sheet Three General Classifications Assets, Liabilities, and Stockholders’ Equity Companies further divide these classifications: Chapter 5-7 Illustration 5-1 LO 2 Identify the major classifications of the balance sheet. Balance Sheet Balance Sheet Current Assets Cash and other assets a company expects to convert into cash, sell, or consume either in one year or in the operating cycle, whichever is longer. Illustration 5-2 Chapter 5-8 LO 2 Identify the major classifications of the balanc...
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This document was uploaded on 02/08/2014.

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