1. What is the difference between a current asset and a longterm asset? Why is cash typically listed first on a balance sheet?
2. List and explain the major items found on an income statement.
3. What is accrual accounting? Give an example of how accrual accounting affects a company's financial statement.
4. List the four categories of financial ratios and give an example of each. What is the purpose of ratio analysis?
5. What is a cash budget? Briefly outline what a simple cash budget might look like.