What are the three essential financial statements? In your own words, describe the purpose of and information contained in each type of financial statement (one paragraph for each of the three types). 2. What is the basic accounting or bookkeeping equation? Define each part of the equation (assets, owner's equity, liabilities). In other words, describe what each part means and provide as many examples of each as you can. 3. What are current assets? Use the Amalgamated Hat Rack (AHR) Balance Sheet. Identify, list, and define the current assets on the balance sheet. Did the company increase or decrease its total current assets from 2018 to 2019? 4. What are fixed assets? What are the fixed assets listed for AHR on the balance sheet? You will see an asset named accumulated depreciation. What is accumulated depreciation? What types of fixed assets usually depreciate? What type of fixed asset usually does not depreciate? What is a "salvage value"? 5. What are current liabilities? List and define the current liabilities on AHR's balance sheet. The AHR Balance Sheet lists accrued expenses. What are accrued expenses? Why are accrued expenses listed as liabilities while prepaid expenses are listed as assets? Why are prepaid