1. What are the differences between the financial and managerial accounting? Discuss.
2. Financial accounting is a language used for communicating financial information that helps users make better economic decision. Discuss.
3. What is meant by the accrual basis of accounting? Discuss.
4. What are the differences between sole proprietorship, partnership, and corporations?
5. Financial accounting information should have some characteristics in order to enhance the decision making. Discuss.
6. Discuss how the choice of depreciation method can be used as a tool to increase reported profits. Give examples.
7. In absence of accounting rules, firms can adopt accounting policies and practices that portray an unrealistic view of financial situation. Critically discuss this statement.
8. What is the processing cycle of accounting records? Discuss.
9. Discuss how the provision for doubtful debt can be used as a tool to increase reported profits, or avoid taxes. Illustrate your thoughts.
10. What kinds of information provide Balance Sheet, an Income Statement, and a Cash Flow Statement. Discuss the differences between them.
11. What is the job of an accounting on daily basis?
12. Discuss how the choice of method of inventory evaluation (FIFO, AWC, and LIFO). Illustrate your points.
13. Double-entry accounting system. Critically discuss this statement.
14. Is it possible for the revaluation reserve to be paid as dividends? Why?
15. Briefly explain the difference between a partnership and a limited liability company.

16. The fundamental accounting concepts listed below form the basis of financial accounting:
    1. Accrual basis of accounting
    2. Money measurement
    3. Going concern
    4. Prudence (or Accounting conservatism)
    5. Dual aspect
    6. Matching (or expense recognition)
    7. Historical cost
    8. Business entity

Give a brief example illustrating how the concept is applied in financial accounting.