Assignment #$1$

Answer all the questions below and submit through the "Assignment #$1-$ submission area" by

$11$:$55$pm on Wednesday May $17$th$.$ The assignment is worth $5\%$ of your final grade.

What are Generally Accepted Accounting Principles $($GAAP$)?$ Explain.

Explain the difference between cash and accrual accounting.

Explain the purpose of the balance sheet and what information it contains.

Explain the purpose of the income statement and what information it contains.

Identify the three ways a business can generate and use cash.

Which financial statements are required to prepare a statement of cash flows?

Define free cash flow.

For each item listed, indicate how the item will impact cash flow $($increase$,$ decrease or

no change$)$ using the indirect method.

What are some actions a company may be tempted to take to unethically and artificially

improve its statement of cash flows presentation?

Indicate the section of the statement of cash flows where each item would be located

$($operating$,$ investing or financing activities$)$ using the indirect method.