Qualitative Questions:

Question #1: Briefly define financial accounting and managerial accounting highlighting the key properties that differentiate the two fields of accounting.

Question #2: Describe the major purpose of the income statement and the cash flow statement. Explain the difference between accrual accounting and cash accounting.

Question #3: Outline the major features of Cost-Volume-Profit Chart.

Question #4: What are the major limitations of the accounting payback period method for evaluating projects? Describe the major concept within finance that is a key cornerstone in other methods of evaluating projects such as net present value.