chapter 12 part 2

Question 1

what is the statement of comprehensive income?

Answer 1

shows revenue from sales and services and expenses a company has incurred during the year.

it shows where income comes from and how it is spent.

Question 2

what are the 3 items of the comprehensive income statement?

Answer 2

1. revenue
2. cost of sales
3. gross profit and other income

Question 3

what are the 4 items of general expenses?

Answer 3

1. distribution costs - includes salaries and commissions to sales personal
2. administration expenses - includes office staff salaries
3. other expenses - includes rent for office space ect
4. finance costs - interest payments on loans ect

Question 4

what is the statement of cash flows?

Answer 4

shows changes in companies financials on a period to period bases.
also helps a investor tell the liquidity and solvency of a company

Question 5

what is the auditors report?

Answer 5

under Canadian law all limited companies must have auditor to represent the shareholders and provide annual reports of the financial statements.