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CHAPTER 2
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BASIC FINANCIAL STATEMENTS
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OVERVIEW OF BRIEF EXERCISES, EXERCISES, AND CRITICAL THINKING
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CASES
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BriefLearning
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ExercisesTopicObjectivesSkills
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B. Ex. 2.1Recording transactions2 - 3Analysis, communication
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B. Ex. 2.2Recording transactions2 - 3Analysis, communication
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B. Ex. 2.3Computing retained earnings2 - 4Analysis
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B. Ex. 2.4Computing total liabilities2 - 4Analysis
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B. Ex. 2.5Computing net income2 - 5Analysis
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B. Ex. 2.6Computing net income2 - 5Analysis
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B. Ex. 2.7Computing change in cash2 - 6Analysis
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B. Ex. 2.8Alternative forms of equity2 - 8Analysis
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B. Ex. 2.9Alternative forms of equity2 - 8Analysis
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B. Ex. 2.10Articulation of financial statements2 - 7Analysis
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Learning
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ExercisesTopicObjectivesSkills
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2.1Real World: American Airlines,2 - 3Communication
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Boston Redsox
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Nature of assets and liabilities
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2.2Preparing a balance sheet2 - 4Analysis
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2.3Preparing a balance sheet2 - 4Analysis
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2.4Accounting principles and asset valuation2 - 2Communication, judgment
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2.5Using the accounting equation2 - 3Analysis
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2.6Accounting equation2 - 3Analysis
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2.7Effects of business transactions2 - 3Analysis
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2.8Forms of business organizations2 - 8Analysis
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2.9Factors contributing to solvency2 - 9Analysis, judgment
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2.10Professional judgment2 - 2Communication
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2.11Statement of cash flows2 - 6Analysis
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2.12Income statement2 - 5Analysis
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2.13Income statement2 - 5Analysis
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2.14Statement of cash flows2 - 6Analysis
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2.15Window dressing financial statement2 - 9Analysis
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2.16Real World: Home Depot2–4 through 2 - 6Analysis, communication
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Home Depot financial statements
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2.17Real World: Target Corporation2 - 5Analysis, communication
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 Assessing financial results
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