1. Why is the revenue recognition principle important?
2. What are the three basic forms of business organization?
3. Identify the owners of corporations and the terminology for ownership units.
4. When is the accounting equation in balance, and what does that mean?
5. How can a transaction not affect any liability and equity accounts?
6. Describe a transaction increasing equity and one decreasing it.
7. Identify a transaction that decreases both assets and liabilities.
8. Explain the link between the income statement and the statement of owner's equity.
9. Describe the link between the balance sheet and the statement of owner's equity.
10. Discuss the three major sections of the statement of cash flows.