Answer the following questions

5. List and describe (what appears on) the four primary financial statements.

6. List the four basic assumptions that must be made and describe each.

Match the following items:

Account Classifications

Descriptions

1.	___ Assets
2.	___ Liabilities
3.	___ Stockholders equity
4.	___ Dividends
5.	___ Revenues
6.	___ Expenses

a.	sales of products or services.
b.	Owners claims to resources.
c.	Distributions to stockholders.
d.	Costs of selling products or services.
e.	Resources of a company.
f.	Amounts owed.

Complete the following:

For each transaction, indicate whether each account would be classified as

1. an asset on the balance sheet
2. a liability on the balance sheet
3. stockholders equity on the balance sheet
4. a revenue on the income statement
5. an expense on the income statement
6. a dividend on the stockholders equity statement.

Account Classifications	Accounts	Related Transactions
1. _______	Rent expense	Cost of rent.
2. _______	Interest revenue	Interest earned on savings account.
3. _______	Dividends	Cash payments to stockholders.
4. _______	Land	Land used for operations.
5. _______	Accounts payable	Amounts owed to suppliers.
6. _______	Utilities payable	Amounts owed for utilities.
7. _______	Cash	Cash available for use.
8. _______	Salaries expense	Cost of salaries.
9. _______	Common stock	Shares of ownership sold to investors.
10. _______	Service revenue	Sale of services to customers.