Questions: 1. Give two examples of expenses a business might incur.
2. What is the purpose of the statement of owner's equity?
3. What information is reported in a balance sheet?
4. The statement of cash flows reports on what major activities?
5. Define and explain return on assets.
6. A Define return and risk. Discuss the trade-off between them.
7. Describe the three major business activities in organizations.
8. Explain why investing (assets) and financing (liabilities and equity) totals are always equal.