1- What is the statement of stockholders equity? What useful information does it contain?

2. What is the statement of cash flows? What useful information does it contain?

3- List the four steps in the accounting cycle.

4- What is the purpose of a general ledger?

5- Explain in general terms the concept of return on investment. Why is this concept important in the analysis of financial performance?

6- Explain what it means when a companys ROE exceeds its RNOA. What about when the reverse?