Exam 1: Introduction to Financial Statements

Cost of goods sold is a(n)

Which of the following uses accounting information to determine whether a company's profit will result in a share price increase?

The common characteristic possessed by all assets is

Identify the users and uses of accounting.

Expenses are identified by the type of liability associated with them.

Which of the following uses accounting information to determine whether a marketing proposal will be cost effective?

Shareholder's equity consists of at least two parts: share capital and retained earnings.

A private corporation is one whose shares are traded on an organized stock exchange, like the Toronto Stock Exchange.

If total liabilities decreased by $45,000 during a period of time and shareholders' equity increased by $27,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total assets is a(n)

Two internal users of accounting information are investors and managers.

The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is called a(n)

Describe the primary forms of business organizations.

The reasons for a decrease in cash can be determined by examining the income statement.

The right to receive money in the future is called a(n)