12.Why are ‘unearned revenues’ considered liabilities? 13.Why do managers need to understand how economic events affect the financial statements? 14.What is depreciation? 15.Explain the...

12.Why are ‘unearned revenues’ considered liabilities?

13.Why do managers need to understand how economic events affect the financial statements?

14.What is depreciation?

15.Explain the difference between temporary and permanent accounts. Please give four examples of each.

16.Explain what is meant by a “contra account” and give two examples of contra accounts that would be found on the balance sheet.