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1. What are the three handy hints for solving most accounting questions? 2. Disclosure notes are an integral part of the information reported in financial statements. In what ways are the notes critical; to understanding the financial statements and evaluating the firm's performance and financial health? 3. How do Type I and Type II subsequent events differ? Why do we have to deal with Type II subsequent events? 4. What are dividends? What effect does the declaration and payment of a $1,000 dividend have on net income? Explain why. 5. What are the major limitations of the balance sheet as a source of information?.

1. What are the three handy hints for solving most accounting questions? 2. Disclosure notes are
an integral part of the information reported in financial statements. In what ways are the notes
critical; to understanding the financial statements and evaluating the firm's performance and
financial health? 3. How do Type I and Type II subsequent events differ? Why do we have to deal
with Type II subsequent events? 4. What are dividends? What effect does the declaration and
payment of a $1,000 dividend have on net income? Explain why. 5. What are the major limitations
of the balance sheet as a source of information?

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