Answer the following questions:

1. The accountant’s equation is assets equal liabilities plus owners’ equity.  Is this logical to you?  Explain.

2. The FASB is a private/non-gov’t organization that governs the financial accounting profession.  Does it make sense for them to be a private/non-gov’t organization?  Explain.

3. Many non-accounting types argue that the cost concept is of little value because it does not reflect fair market value? What do you think? Explain.