1- As a small business owner in today’s economy, what three financial reports would you use on a regular basis? What information would you find on each statement? What decisions might each statement help you make? Please provide specific examples.
2- The accounting equation is assets = liabilities + owner’s equity. Please explain the relationship between economic resources and claims to economic resources. Why must this equation always balance? What transactions increase or decrease owner’s equity? How does net income or loss affect owner’s equity? Please give an example of a transaction, applied to the accounting equation.
3- There are four methods for inventory costing: LIFO, FIFO, weighted average and specific identification. What are the differences between each method? How does each method affect the balance sheet and the income statement? What do I mean when I say that inventory costing methods are not related to the physical flow of inventory? Please give an example.
4- Reflecting on the course, what were the most important or useful concepts you learned? What can you see applying professionally? What questions do you still have as you prepare for the final exam? What strategies are you using to study for the exam?
–on questions 4 mention about chapter powerpoints, ebook easy access and website resources.–
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