Chapter 1: Business Decisions & Financial AccountingSI Acct 284- August 31, 20081. What is accounting?2. Who are the decision makers that use the financial information?3. List the FOUR financial statements:4. Who is primarily responsible for the information in a company’s financial statements?5. What are the three activities on the statement of cash flows?6. What is the disadvantage of incorporation? Explain.7. What are the three key accounting equations?8. Match the following words with the word that best fits each description.a. Relevance b. Reliabilityc. Comparability d. Consistencye. Sole proprietorship f. Partnershipg. Corporation h. assetsi. liabilities j. stockholder’s equityk. revenues l. expenses_____ The resources owned by a company._____ Financial information of a single company that can be compared over timebecause similar accounting methods have been applied. _____ A business with one owner; unlimited liability._____ The total amounts invested and reinvested in the business by the owners._____ The costs of business necessary to earn revenue._____ A feature of financial information that allows it to influence a decision._____ A business in which two or more people take ownership; unlimited liability._____ Earned by selling goods or services to customers (purpose of business)_____ The amounts owed by the owners/company._____ Financial information that is unbiased and verifiable._____ A business with limited liability; protects personal assets of owners._____ Financial information that can be compared across businesses because similar accounting methods have been
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