. Answer and explain each question

a) For which classification of users are financial statements prepared?

b) Where do expenses belong in the accounting equation? How does an increase in an expense affect the accounting equation, assuming the expense was paid in cash.

c) The Conceptual Framework includes the Going Concern Assumption. What is the going concern assumption, and how does it affect the financial statements we prepare?

d) Why is it important that a manufacturer disclose the cost of each classification of ending inventory that it holds at year end?

e) How may financial statements assist the users of the financial statements?