This module covers the balance sheet, one of the basic financial statements. Students first read chapter 2 of Understanding Financial Statements, ninth edition, by Lyn M. Fraser and Aileen Ormiston, then view the on-line presentation. Topics covered include: the effect of the legal form of the debtor on the balance sheet, taxes, and liability for debts; entries on the balance sheet and what each represents; structure of the balance sheet; how dollar values for balance sheet entries are computed; and an introduction to the working capital cycle. The module concludes with a problem assignment with problems on deferred taxes, inventory accounting, and balance sheet structure.
Dr. Frederick C. Scherr is a Professor Emeritus of Finance at the College of Business and Economics at West Virginia University, where he taught for 30 years and won both the College’s Outstanding Teacher and Outstanding Researcher awards. He is the author of more than 30 research articles, four textbooks, and many articles in professional publications such as The Credit and Financial Management Review, The Credit Manager, and Business Credit. He has done extensive work in adult education for the National Association of Credit Management, including teaching at the Graduate School of Credit and Financial Management, and for private corporations.