Questions:
1. What are the three major business activities in which accountants play a major role? Give an example of each.
2. What is double-entry bookkeeping? Give a brief example.
3. List the four major financial statements. Which financial statements are permanent and which are temporary?
4. What is the difference between a current asset and a long-term asset? Why is cash typically listed first on a balance sheet?
5. What is accrual accounting? Give an example of how accrual accounting affects a firm 's financial statement.