1. What is the role of accounting in business?
2. Briefly describe the nature of the information provided by each of the following financial statements: the income statement, the retained earnings statement, the balance sheet, and the statement of cash flows. In your descriptions, indicate whether each of the financial statements covers a period of time or is for a specific date.
3. For the year ending January 31, 2004, The Limited Inc. had revenues of $8,934 million and total expenses of $8,217 million. Did The Limited
(a) incur a net loss or
(b) realize net income?
