1. What are the three basic activities of accounting? In which (may be more than one) do you think the most errors or fraud occur? Why?
2. Which financial statement do you find the most useful? Why? Would some users prefer different financial statements than other users? Explain your thoughts.
3. Cash accounting is often used by small businesses, what are your thoughts about this? Could the statements be misleading if they were in accrual? How could cash or accrual be a preferred method? State your reason.

4.Which type of accounts will appear in the post-closing trial balance? Give some examples of specific accounts that are closed