Chapter 1

Question 1

Expenses

Answer 1

Statement of earnings

Question 2

Cash flow from investing activities

Answer 2

Statement of cash flows

Question 3

Assets

Answer 3

Statement of financial position

Question 4

Dividends

Answer 4

Statement of shareholders’ equity

Question 5

Revenues

Answer 5

Statement of earnings

Question 6

Cash flow from operating activities

Answer 6

Statement of cash flows

Question 7

Liabilities

Answer 7

Statement of financial position

Question 8

Cash flow from financing activities

Answer 8

Statement of cash flows

Question 9

Retained earnings on statement of financial position

Answer 9

Shareholder’s Equity

Question 10

Accounts receivable on statement of financial position

Answer 10

Asset

Question 11

Sales revenue on statement of financial position

Answer 11

Revenue

Question 12

Property & Equipment on statement of financial position

Answer 12

Asset

Question 13

Cost of sales on statement of financial position

Answer 13

Expense

Question 14

Inventories on statement of financial position

Answer 14

Asset

Question 15

Interest expense on statement of financial position

Answer 15

Expense

Question 16

Accounts Payable on statement of financial position

Answer 16

Liability

Question 17

Land on statement of financial position

Answer 17

Assets

Question 18

2 objectives of financial accounting

Answer 18

1. Identifies and records economic events
2. Communicates financial information to those running the business and outsiders