Explain the qualitative characteristics of financial information in investing and lending decision making.

Types of Adjustments

In Week 4, students will learn how managers, investors, and other business stakeholders use accounting
reports. Students will be introduced to the idea that investors can only make sound investment decisions when
public accountants disclose meaningful, timely, and accurate financial information to the public. After
completing Week 4, students will be able to explain how investors use the Securities and Exchange
Commission’s (SEC) EDGAR database to research companies’ operations and financial information.
COURSE LEARNING OUTCOMES

Upon successful completion of this course, students will be able to
Determine the objective(s) of financial reporting.
Explain the qualitative characteristics of financial information in investing and lending decision making.
Compile financial statements from a given set of economic events under GAAP that take into account the effect of accruals and deferrals.
Originate the accounting of reporting cash, receivables, inventory, long–term assets, and liabilities on financial statements.
Analyze financial statements to assess a firm’s liquidity, solvency, and profitability.
Determine the risk of investing in a company based on the firm’s financial condition, performance, and earnings management.