Use these questions as a guide when you read the textbook. Read the book and view the Powerpoint slides so that you can best answer the questions. Use your own words without copying directly from the book and use unique examples. Chapter 2 Questions 1. Identify sections of a classified balance sheet. Identify two accounts that fit into each section. 2. What is measured by profitability ratios? Give an example of how you compute EPS and discuss how it is used to measure profitability. 3. Define liquidity and solvency. Identify ratios for analyzing a firm's liquidity and solvency. How are these ratios interpreted? 4. What are generally accepted accounting principles? Name the U.S. and international standard-setting bodies that establish these principles