[Editor's Note: this article is in reference to the old paper-based exam, not the computer-based exam now in use.]

• A classified balance sheet
• A multiple step income statement
• A statement of comprehensive income
• A statement of cash flows
• A statement of retained earnings

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Begin each statement with a proper heading using three lines as follows:

1. Company Name
2. Statement Name
3. Statement Date (recall only the balance sheet is as of one day, all other financial statements are for the period ended)

 The classified balance sheet should contain five asset sections:

1. Current assets
2. Long-term investments (available for sale and held-to-maturity)
3. Property, plant, and equipment
4. Intangible assets
5. Other assets

 The stockholders’ equity statement should divide the accounts into two categories:

1. Retained earnings
2. Paid-in-capital

Have a good understanding how to report discontinued operations, extraordinary items, and the cumulative effect of accounting changes on the income statement. Recall, the foregoing three items should be reported net of tax.

Why set yourself up for failure? Know how to prepare the basic financial statements.

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