1- What is the primary purpose of financial accounting?

2- What are the rules of financial accounting called?

3- What is a distribution to stockholders called?

4- Who has claims to the companys resources (assets)?

5- What accounts make retained earnings increase?

6- In the T account, when we subtract the difference between the debits and credits at the end of the period, what is this number called? Hint: The account _____________.

7- What does the trial balance clearly present?

8- Calculate net income/loss when beginning retained earnings are $50,000; revenues are 24,000; expenses are 27,000; and dividends are $2,700. Hint: not all accounts given are used!

9- What are the four financial statements, and what information is presented on each?