Exam 1: Introduction to Financial Statements

Debt and obligations of a business are referred to as

The accounting equation may be expressed as

Payments to shareholders are called dividends.

The Canada Revenue Agency is the major external user of information.

A partnership is a business organized as a separate legal entity.

A small neighbourhood barber shop that is operated by its owner would likely be organized as a

Dividends are reported on

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of a business for a specific period of time.

The primary purpose of the statement of cash flows is to report

The cost of assets consumed or services used is also known as a(n)

The statement of changes in equity is dependent on the results from

The liability of corporate shareholders is limited to the amount of their investment.

Dividends

Which of the following would not be considered an internal user of accounting data?

The statement of cash flows and the statement of financial position are interrelated because

Shareholders' equity can be described as claims of

Which of the following activities involves raising the necessary funds to support the business?

A business organized as a corporation

Accounting information is not important to marketing managers.

External users want answers to all of the following questions except