DQ 1: PROSPECTIVE INVESTOR

Today corporations are required to send their stockholders an annual report. Assume that you are a prospective investor trying to decide if you should invest in a specific corporation. What type of information is contained in an annual report that would help you decide if this is the right investment for you? Give two reasons why this information is important to you. Please be specific. Use this format for your answer:

Information that would help you decide on the right investment: Reason for importance to you #1: Reason for importance to you #2:

DQ2: The Accounting Equation

State the fundamental accounting equation (hint: blank =blank + blank) and list two specific examples of an asset and a liability. What is the relationship between owners equity (balance sheet) and net income (income statement)? Please use the following format:

Accounting Equation: blank=blank+blank Assets: Asset #1: Asset #2: Liabilities Liability #1: Liability #2: Relationship between owners equity (balance sheet) and net income (income statement):