Chapter 1 Finacial Accounting

Exercise 1-1 Types of Business Activities, p. 36

1. Financing

2. Investing

3. Investing

4. Financing

5. Operating

6. Operating

7. Investing

Exercise 1-12 Accounting Principles and Assumptions, p. 39

1. Going Concern

2. Cost Principle

3. Economic Entity

4. Monetary Unit

5. Time Period

Exercise 1-15 Users of Accounting Information and the Financial Statements, p. 40

1. Income Statement

2. Balance Sheet

3. Balance Sheet

4. Retained Earnings

5. Income Statement

6. Balance Sheet

Problem 1-5 Income Statement, Statement of Retained Earnings, and Balance Sheet, p. 42

**Please see Excel attachment with this assignment labeled ‘Cabeen HM1R’.**

Yes, I would invest a $1,000 with in the Maple Park Theatres Corp. Looking at the balance sheet, the current assets outweigh the current liabilities and if anything were to happen to the company I would have a high chance of earning my money back based on just selling the assets off.

Decision Case 1-7 Responsibility for Financial Statements and the Role of the Auditor, p. 52

1. The person responsible for preparing the financial statements that are included in a company’s report is financial accountant and they are the responsibility of the company’s management.

2. External Auditors from public accounting firms perform an audit of the financial statements that are prepared by the financial accountant.

3. It is important that those who are responsible for an audit of financial statements are independent of those who prepare the statements to ensure the management is fairly presenting the financial statements to the stock holders who are not involved in the day to day operations. An audit is a process of examining the financial statements and underlying records of a company to render an opinion as to whether they are fairly presented.