What is the difference between a manufacturing business and a merchandising business? Give an example of each type of business.

Briefly describe the nature of the information provided by each of the following financial statements: the income statement, the statement of stockholders equity, the balance sheet, and the statement of cash flows. In your descriptions, indicate whether each of the financial statements covers a period of time or is for a specific date.

What are the basic elements of a financial accounting system?

Provide an example of a transaction that affects (a) only one element of the accounting equation, (b) two elements of the accounting equation, (c) three elements of the accounting equation.

Assume that Esquire Consulting erroneously recorded the payment of $30,000 of dividends as salary expense. (a) How would this error affect the equality of the accounting equation? (b) How would this error affect the income statement, statement of stockholders equity, balance sheet, and statement of cash flows?