Problem
A. Why does accounting rely on inexact or approximate measures?
B. List three accounting-related skills, that are useful to many people in their personal lives.
C. Why do we need both a balance sheet and an income statement?
D. What examples of things similar to balance sheets and income statements have you encountered in your everyday life?
E. Mr. Uriah Heep is your long term supplier of the raw material. Normally you pay immediatelly in cash. Describe, how the cash payment transaction effects the balance sheet. Has the size of your balance sheet changed? You are considering that next time you would pay on account. Describe, how such transaction would affect your balance sheet. Has the size of your balance sheet changed?