1Understand the objectives of financial reporting.

2Explain and apply the basic principles of accounting.

3Describe how to prepare and analyze an income statement, balance sheet, statement of cash flows and statement of retained earnings under generally acceptable accounting principles (GAAP).

4Understand the tradeoffs involved in standard setting, the limitations of current accounting standards, and the effects that these tradeoffs and limitations have on the quality and content of financial statements.

5Gain an appreciation of firms' ability and incentives to choose from a wide variety of alternative measurement bases and accounting procedures and the effects that those choices have on readers of firms' financial statements.