Table of Contents

Chapter 1 - Principles of Financial Statement Presentation - Section 1. 7

Learning Objectives. 7

Introduction. 7

Presentation of Financial Statements. 7

Discontinued Operations. 8

Management Commits to a Plan to Sell the Asset 9

Asset Available for Immediate Sale in its Present Condition. 9

Active Program to Locate a Buyer and Other Actions have been Initiated. 11

Sale is Probable and Expected to be Completed as a Sale in One Year 11

Unlikely Significant Changes to Plan will be made or the Plan will be Withdrawn. 12

Income Statement Presentation. 13

Balance Sheet Presentation. 14

Chapter 1 - Section 1 Review Questions. 16

Chapter 1 - Principles of Financial Statement Presentation - Section 2. 17

Liquidation Basis of Accounting. 17

Going Concern. 20

Balance Sheet Presentation. 23

Disclosure Requirements. 25

Chapter 1 - Section 2 Review Questions. 27

Chapter 1 - Principles of Financial Statement Presentation - Section 3. 28

Income Statement 28

Comprehensive Income. 29

Statement of Cash Flows. 31

Chapter 1 - Section 3 Review Questions. 35

Chapter 1 - Principles of Financial Statement Presentation - Section 4. 36

Proceeds from Insurance Claims. 39

Direct Method. 40

Indirect Method. 41

Chapter 1 - Section 4 Review Questions. 45

Chapter 1 - Principles of Financial Statement Presentation - Section 5. 46

Notes to Financial Statements. 46

Basis of Consolidation. 47

Amortization of Intangibles. 47

Inventory Pricing. 48

Revenue Recognition. 49

Changes in Accounting Principles. 50

Chapter 1 - Section 5 Review Questions. 56

Solutions to Review Questions. 57

Glossary of Terms. 66

Final Examination. 69