Problem
i. Your personal celebrity has asked you to prepare a personal balance sheet and income statement for her. Define Assets, Liabilities, Owner's Equity, Revenues and Expenses. Identify some of her personal assets and liabilities. Explain to her what her equity represents.
ii. You have decided to start a business. What will you sell? Identify the three forms of business organization you could choose and describe their characteristics. Which form of business is best for your business and why?
iii. What ethical issues might accounting professionals face in dealing with confidential information?
iv. Assets are resources that the organization has control over that provide that future benefit to a business as a result of a past transaction. Explain how cash, accounts receivable, and supplies provide future benefit to a business.
v. Why it is important to prepare the financial statements (Statement of Changes in Equity, Balance Sheet, income Statement) in a specific order? Identify the specific order. Identify how the financial statements are interrelated?
vi. Define GAAP principles, International Financial Reporting Standards (IFRS) and Accounting Standards for Private Enterprises (ASPE).