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Part A: Answer each of the following questions in one or two paragraphs. Each answer is 20 worth 20 points.
- Explain what a balance sheet is, and how it’s different from the income statement, the statement of the changes I owner’s equity, and the statement of cash flows.
- What is a return on equity? How is it calculated? And why is it significant?
- List four examples of timing differences, and explain why they’re significant.
Part: B Answer each of the following questions in one to four sentences. Each answer is worth 4 points.
- Determine which classification of accounting is most concerned with the use of economic and financial information to plan and control many of the activities of the entity.
- How the return on investment measure of performance calculated?
- Is financial accounting historical scorekeeping or is it future oriented?
- What does the bookkeeping/accounting process begin with?
- Explain the significance of the allowance for Bad debts account.
- In Financial accounting, what is one application of the matching concept?
- Explain what a callable bond is?
- What is the slate voting?
- Who are the ultimate owners of a corporation?
- What is the term used to describe the revenues of the firms that sell purchased or manufactured products?
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