Explain the relationships among the financial statements 1) Which financial statement mu

Explain the relationships among the financial statements 1) Which financial statement mu

 Explain the relationships among the financial statements

1) Which financial statement must be prepared before the others?

A) income statement

B) balance sheet

C) cash flow statement

D) retained earnings statement

2) The oldest organization of professional accountants in Canada is the:

A) Canadian Institute of Chartered Accountants

B) Securities and Exchange Commission

C) Financial Accounting Standards Board

D) Auditing Standards Board

3) Accounting standards for accountants in Canada are established by:

A) the Canadian Institute of Chartered Accountants

B) the Society of Management Accountants of Canada

C) the Certified General Accountants Association of Canada

D) the Canadian Institute of Chartered Accountants, the Society of Management Accountants of Canada, and the Certified General Accountants Association of Canada

4) According to the Canadian Institute of Chartered Accountants (CICA), the primary objective of financial reporting is to provide information:

A) to the federal government about tax matters

B) useful for making investment and lending decisions

C) regarding the cash flows of the business

D) about the profitability of the business

5) In order for information to be considered a faithful representation it must be all of the following except:

A) complete

B) predictive

C) without material error

D) neutral

6) Describe the relationship between the Income Statement, Statement of Retained Earnings and the Balance. 

7) Tap Corporation gathered together the following information regarding the asset, liability, shareholders' equity, revenue, and expense accounts as of the end of its first year in operations, August 31, 2010:

Rent expense$ 7,500Dividends$10,200

Truck23,600Accounts payable6,700

Supplies2,500Service revenue45,600

Salary expense 19,400Salary payable 12,200

Accounts receivable8,200Utilities expense5,000

Note payable10,000Interest expense1,200

Common shares 25,000Cash21,900

Prepare a balance sheet for Tap Corporation dated August 31, 2010.

8) Choose the appropriate definition for the terms below.

a.a business owned by a single owner

b.a statement summarizing the revenues and expenses for a given period

c.resources that provide future economic benefits to a business

d.claims by outsiders on the resources of a business

e.revenues less expenses

f.a business owned by shareholders

g.shows the net change in the cash account for a given period

h.a formal listing of the accounting equation on a specified date

________1.corporation

________2.cash flow statement

________3.income statement

________4.net income

________5.proprietorship

________6.balance sheet

________7.liabilities