Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Burnley test bank
___ 3. Payment of dividends
___ 4. Sale of long-term assets
___ 5. Purchase of another company's shares
___ 6. Receipt of dividends
___ 7. Collections of amounts owed by customers
___ 8. Issuing shares
___ 9. Purchase of another company’s bonds
___ 10. Purchase of inventory
___ 11. Sales to customers
___ 12. Share repurchase
Solution (5 min.)
1. c
2. a
3. c
4. b
5. b
6. a
7. a
8. c
9. b
10. a
11. a
12. c
Bloomcode: Comprehension
Difficulty: Medium
Learning Objective: Explain the three categories of business activities and identify examples of transactions related to each category.
CPA: Financial Reporting
AACSB: Analytic
95. Match each of the following financial statement lines to the correct financial statement by placing the appropriate letter in the space provided.
Financial Statement
a) Statement of Financial Position
b) Statement of Income
c) Statement of changes in equity
d) Statement of Cash Flows
___ 1. Income Taxes Payable
___ 2. Cost of Goods Sold
___ 3. Property, plant and equipment
___ 4. Cash from Operating activities
___ 5. Dividends Declared
___ 6. Inventory
___ 7. Operating expenses
___ 8. Gain on machinery
___ 9. Prepaid Expenses
___ 10. Accounts Receivable
___ 11. Net Income
___ 12. Goodwill
Solution (5 min.)
1. a
2. b
3. a
4. d
5. c
6. a
7. b
8. b
9. a
10. a
11. b
12. a
Bloomcode: Knowledge
Difficulty: Medium
Learning Objective: Identify and explain the content and reporting objectives of the four basic financial statements and the notes to the financial statements.
CPA: Financial Reporting
AACSB: Analytic
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