Section 1: 30–40%1A1
Balance Sheet / Statement of Financial Position
The balance sheet is the foundation of financial reporting. AICPA tests classification (current vs. non-current), presentation requirements, and the accounting equation.
What AICPA Wants You to Know
- 1Apply the accounting equation: Assets = Liabilities + Equity
- 2Classify assets and liabilities as current vs. non-current
- 3Identify what belongs in each section of the balance sheet
- 4Apply the one-year rule for current vs. non-current classification
- 5Understand offsetting rules (when assets and liabilities can be netted)