1. How do financial accounting and managerial accounting differ? 2. Name four basic financial reports produced from financial accounting. 3. What does the term "generally accepted accounting principles" (GAAP) refer to, who creates them, and why are these important? 4. How cannot knowing the accounting entity be a problem in developing accurate reports or understanding them? 5. What is the duality principle of accounting? 6. What is the difference between valuing assets by historical cost, replacement value, and market cost? Which is the preferred method in accounting? Why? 7. What is the difference between the accrual and cash basis of accounting? In which system will you find accounts payable and accounts receivable reported? 8. What is fund accounting? When is it used? 9. Describe the application of each of the three conventions of conservatism, materiality, and consistency. Give an example of each convention to illustrate your understanding of the concepts. 10. Why does the value of total assets only coincidentally represent the economic value of an entity