1. What is the most general objective of financial reporting? Who are investors, lenders, and other creditors?

2. What is the cost constraint, and how does it affect financial reporting?

3. What is relevant accounting information? Identify and define the characteristics of relevant accounting information.

4. What is conservatism? Why do accountants sometimes find it necessary to be conservative in financial reporting?

5. What is faithfully represented accounting information? Identify and define the characteristics of faithful representation of accounting information.

1. Explain briefly to someone who is not an accounting major why the information on financial statements are useful? What is useful accounting information?

2. Written response that identifies and explains the qualitative characteristics of useful accounting information?

3. Written response that identifies and briefly explains the objectives of financial reporting?