Explain the purpose of each of the financial statements and the relationships among them and prepare a set of simple statements.

Explain the purpose of each of the financial statements and the relationships among them and prepare a set of simple statements. LO6 Identify and explain the primary assumptions made in preparing financial statements. Identify the various groups involved in setting accounting standards and the role of auditors in determining whether the standards are followed. Explain the critical role that ethics play in providing useful financial information.