Course 6 - Current Assets and Asset Valuation (Video) (Course Id 1899)

This course is course 6 in the 8-course series on Financial Reporting and Analysis offered by PRATTedu.  It is comprised of 5 videos, focusing on how companies manage and account for the primary current assets: accounts receivable, inventory and some investments.  It also provides a broad discussion of the general ways in which assets are depicted on the financial statements.  The financial statements and the footnotes of the companies featured in this course include Caterpillar Financial, Caterpillar Manufacturing, John Deere, Nordstrom, Yahoo, Barnes & Noble, and Amazon.

Course Learning Objectives

• Describe how receivables appear on the balance sheet and explain how bad debts are accounted for.
• List and describe the four basic issues involved in accounting for merchandise inventory.
• Differentiate raw materials, work in process and finished goods, and explain how costs are attached to the inventory account as products move through the manufacturing process and are eventually sold.
• List and define the three primary inventory cost flow assumptions and how they affect both the balance sheet and the income statement.
• List and describe the basic asset valuation approaches and explain how each approach affects the financial statements.