1. “Financial statements show the results of the stewardship of management or the accountability of management for the resources entrusted to it. Those users who wish to assess the stewardship or accountability of management do so in order that they can make economic decisions.”

Required: Discuss what is meant by stewardship and accountability and give an example of each.

2. A financial market is a place where the trading of securities is facilitated and occurs. Financial markets are important for the smooth running of economies. Explain the various kinds of financial and capital markets. Also, discuss the nature and role of financial markets.