General Information questions= 3 points each

1. What type of accounting is aimed at serving the needs of external users by providing them with general purpose accounting statements?

2.What is the Basic Accounting equation? What financial statement does it describe in simple form?

3. What is the expanded accounting equation and how does it tie in the Balance Sheet and the Income statement?

4. What is the difference between the Balance sheet and Income Statement in terms of time frame? How does the income statement relate to the balance sheet timewise?

5. We have said in class that the basic financial reports tell a story about a business entity. What are the 4 basic accounting reports?

6.Why must a balance sheet balance?