Discussion questions will be evaluated based on:

• Accurate response stated in student’s own words. 
  • Students who merely copy an answer from the text book, solutions manual, website, or another student will receive zero credit.  
• Response stated clearly and concisely.
• Spelling and sentence structure  

2. why is knowledge of accounting terms and concepts useful to persons other than professional accountants?
3. in general term, what are revenues and expense? How are they related in the determination of an enterprise’s net income or net loss?
4. why is the statement of financial position or balance sheet, a logical place to begin a discussion of financial statements?
5. what is the basic accounting equation? briefly define the three primary elements in the equation.
6. why is the going – concern assumption an important consideration in understanding financial statements?
8. give an example of business transactions that would
a. cause one asset to increase and another asset to decrease, with no effect on either liabilities or owner’s equity.
b. cause both total assets and liabilities to increase with no effect on owner’s equity.
10. what are the three categories commonly found in a statement of cash flows, and what is included in each categories?
11. what is meant by the statement that the financial statement articulate?
12. what is meant by the term adequate disclosure, and how do accountants fulfil this requirement in the preparation of financial statements?