1 – Students will be able to define liabilities and distinguish between current and non-current liabilities as well as certain and uncertain (i.e., contingent) liabilities.  With regard to certain liabilities, students will have an understanding of valuation and classification issues associated with notes, bonds and leases so that they can make appropriate journal entries from the perspective of the borrower.  With regard to contingent liabilities, students should be able to identify situations when contingent liabilities are to be disclosed and/or accrued.

2 – Students will be able to account for liabilities (and assets, in some instances) booked based on extensive projections and estimates, such as those established for deferred income taxes, pensions, other post-retirement benefits and option-based compensation. 

3 – Students will be able to describe the components of shareholders’ equity, including comprehensive income, and treasury stock, and be able to post appropriate journal entries related to equity accounts.

4 – Students will understand the reporting requirements for Earnings Per Share, both basic and diluted.

5 – Students will identify the differences between various categories of accounting changes, be able to make appropriate journal entries for each type of change and fix errors of the past in current accounting records in a manner consistent with GAAP.

6 – Students will be able to construct a Statement of Cash Flows using the indirect and direct methods.