1. Define the terms assets, liabilities, and stockholders' equity. Provide two (2) examples of each term. Describe the effect of debit and credit entries on each term.

2. Define the terms revenue and expense. How are these terms related? Provide two (2) examples of each term. Describe the effect of debit and credit entries on each term.

3. Give an example of unethical behavior by a public accountant and describe its consequences.

4. A financial item that may be useful to investors is not required to be reported because the cost of measuring and reporting this information is judged to be too great. Describe the qualitative characteristic or constraint that is most applicable to this statement.

5. A quality of information that enables an analyst to evaluate the financial performance of two different companies in the same industry. Describe the qualitative characteristic or constraint that is most applicable to this statement.