Assignment :

(Explain in your own words)

1. What information should be included in the heading of each of the financial statements?

2. Briefly explain the difference between net income and net loss.

3. What are the purposes of (a) the balances sheet, (b) the income statement, (c) the statement of retained earnings, (d) the statement of cash flows?

4. Show the income statement equation define each element.

5. Distinguish between financial accounting and managerial accounting .