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1. Describe the three basic forms of business organization and their key attributes. 2. What events or transactions change equity? 3. What information is reported in an icome statement? 4. Discuss the steps in processing business transactions? 5. Why does the bookeeper prepare a trial balance? 6. What items appear in financial statements of merchandising companies but not in the statements of service companies? 7. Distinguish between cash discounts and trade discounts for purchases. Is the amount of a trade discount on purchased Samsung title its cost of goods sold account? 8. Why do companies offer a cash discount? 9. Describe how costs flow from inventory to cost of goods sold for the following methods: (a) FIFO and (b)LIFO. 10. Where is the amount of merchandise inventory disclosed in the financial statements? 11. How do sellers benefit from allowing their customers to use credit cards? 12. Why does the direct write-off method of accounting for bad debts usually fail to match revenues and expenses? 13. What are the characteristics of an intangible asset