Problem 1: Illustrate the importance of an accurate balance sheet to investors with an example.
Problem 2: Differentiate between operating activities, investing activities, and financing activities.
Problem 3: Illustrate the concept of the time value of money by using an example, including a measurement tool and its application.
Problem 4: Determine which fundamental concept of the time value of money you feel is the most important. Justify your selection.
Problem 5: Differentiate between cash and receivables.
Problem 6: Compare and contrast the allowance method for recording collectibles with the direct write-off method. Evaluate why one method is GAAP and one is not.