Briefly discuss Generally Accepted Accounting Principles or
G.A.A.P.  What are they? What is their purpose? Name the U.S. and international
standard-setting bodies that established these principles.  Are all companies
required to follow these principles?  Why or why not?
Your answer should
illustrate understanding of generally accepted accounting principles and their
international counterpart.

Q2

Visit the website for Tootsie
Roll (www.tootsie.com).  Click on “Company
Information” then “Financial Information”. Open the latest annual report and
review it to find the answers to the following questions:

• What are Tootsie Roll’s corporate principles?  Do
  you agree with these principles, or do you feel there are additional principles
  that should be included?
• What was the total amount of Tootsie Roll’s
  assets for the most current year available?
• What was the total amount of Tootsie Roll’s
  liabilities for the most current year available?
• What is the amount of the difference between
  Tootsie Roll’s assets and liabilities? What is this difference called?

Based on your initial findings at the Tootsie Roll
website, would you consider investing in them? Why or why not? Your answer
should illustrate critical thought and understanding of the annual report and
financial statements