Question 1: Illustrate the importance of an accurate balance sheet to investors with an example.
Question 2: Differentiate between operating activities, investing activities, and financing activities.
Question 3: Illustrate the concept of the time value of money by using an example, including a measurement tool and its application.
Question 4: Determine which fundamental concept of the time value of money you feel is the most important. Justify your selection.
Question 5: Differentiate between cash and receivables.
Question 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.