1. Describe the roles and responsibilities of management and independent auditors in the financial reporting process 2. Define the following three users of financial accounting disclosures and the relationships among them: a) Financial analysts b) Private investors c) Institutional investors 3. Briefly describe the role of information services in the communication of financial information. 4. Explain why information must be relevant and reliable to be useful. 5. What basis of accounting does GAAP require on the a) Income statement b) Balance sheet c) State of cash flows 6. Briefly explain the normal sequence and form of financial reports produced by private companies in a typical year. 7. Briefly explain the normal sequence and form of financial reports produced by private companies in a typical year. 8. What are the four major subtotals or totals on the income statement? 9. Define extraordinary items. Why should they be reported separately on the income statement? 10. List the six major classifications reported on a balance sheet 11. For property, plant, and equipment, as reported on the balance sheet, explain: a) Cost b) Accumulated depreciation c) Net book value 12. Briefly explain the major classifications of stockholders’ equity for a corporation 13. What are the three major classifications on a statement of cash flows? 14. What are the three major categories of notes or footnotes presented in annual reports? Cite an example of each 15. Briefly define return on assets and what it measures