ACW 1020

Key points for Week 3 topic

Measuring and reporting financial position (Balance Sheet)

To get the most from your online learning and resources, you are strongly encouraged to make your
own note. By actively identifying the critical points while you are studying this week’s content, you
are reaffirming your understanding of the topic. You will find your notes would be very useful for
your revision for the tests or exam. You can use the following key points to start making your notes.

1. The nature and role of Balance Sheet

 Accounting equation

2. Assets
 4 characteristics of assets in accounting
 Examples of assets
 Classifications of assets
 Measurement of non-current assets

3. Liabilities
 4 characteristics of liabilities in accounting
 Examples of liabilities
 Classifications of liabilities

4. Equity
 Definition of equity
 Components of equity
 Retained earning
 Dividend

5. Usefulness and limitations