Course 5 – Current Classification, Debt and Equity
The Current Classification, Debt, and Equity course, which is comprised of 6 videos, begins by discussing the concept of classification, and then moves into discussions of the company’s two primary forms of financing: debt and equity. The financial statements and the footnotes of the companies featured in this course include General Motors, Volkswagen (an IFRS user), Amazon, Home Depot and Panera.
Course 5 Learning Objectives
- Describe the key measurement issues addressed by the financial statements and explain how the current classification is used.
- Define the concept of a contingent liability and explain how contingencies are accounted for.
- Define what a bond is and explain how bond issuances are accounted for using the effective interest method.
- Explain how the effective interest method is used to account for bond investments and describe how management’s intention determines how changes in bond market values are accounted for.
- Describe the difference between short-term and long-term (financing and operating) leases and how both kinds of leases are reflected on the financial statements of the lessee.
- Summarize the shareholders’ equity section of the balance sheet and describe the transactions leading to each line item within that section.
Course Components
- PRATTedu Resources
- PRATTedu Program Structure
- Videos 1 – 6, each followed by knowledge check (KC) questions
- Assessment Quiz (must score 70%)
CPE Requirements
- The assessment Quiz must be completed satisfactorily no later than one year after enrollment, at which time your access to the website will expire.
- A 70% minimum score on the Assessment Quiz is required for satisfactory completion and to receive a certificate.
Course Navigation
Main Course Page Navigation (Current Page)
The main course page for each course consists of 6 sections: (1) Course description; (2) Learning objectives; (3) Course components; (4) CPE requirements; (5) Course navigation; and (6) the master course navigator, which allows you to quickly jump to the various lessons that make up the course. The course structure and resources, the course videos, and the final assessment quiz.
Master Course Navigation
Simply complete the lessons in order. At the bottom of each lesson, are two buttons: Previous Lesson or Next Lesson. We also include excerpts in the buttons so you can quickly identify the content in each direction. You can always go back to the beginning of the course (course intro page) by clicking the “back to Course 1 – Introduction to Financial Statements link. Note: At the bottom of each completed lesson (right above the previous/next buttons) it will state “Complete Lesson” make sure you click it before moving on.
MAKE SURE YOU GET YOUR CERTIFICATE! Please read below:
You must mark each page of our courses as complete for our system to register for completion of a course and generate a certificate. The Structure and Resources section is typically missed by many users, simply scroll to the bottom of each page and click the blue “Mark Complete” button and enjoy your course!
Course Information
Course Instructor
Basic Enrollment
Scoring at least 70% on the assessment quiz after completion of this course earns a Certificate of Completion worth 4 hours of continuing professional education (CPE) credits.