Accounting Principles 6th Canadian Edition (Volume 1) Weygandt Kieso Kimmel Trenholm Kinnear Barlow
, [DOCUMENT TITLE]
Accounting Principles 6th Canadian Edition
(Volume 1) Weygandt Kieso Kimmel Trenholm
Kinnear Barlow (Test Bank All Chapters, 100%
Original Verified, A+ Grade) Answers At The End
Of Each Chapter (Chapter 1-10)
CHAPTER 1
ACCOUNTING IN ACTION
SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM’S
TAXONOMY
Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT
Exercises
1. 1 C 10. 3 K 19. 3 K 28. 5 C 37. 6 AP
2. 1 C 11. 3 K 20. 3 AP 29. 5 C 38. 6 AP
3. 1 K 12. 3 K 21. 3 K 30. 5 C 39. 6 AP
4. 2 N 13. 3 AP 22. 3 AP 31. 5 C 40. 6 AP
5. 2 C 14. 3 AP 23. 3,5 AN 32. 5 C 41. 6 AP
6. 2 C 15. 3 AP 24. 4 K 33. 5 K
7. 2 C 16. 3 AP 25. 4 C 34. 5 C
8. 2 K 17. 3 AP 26. 4 C 35. 5 AP
9. 2 K 18. 3 C 27. 4 K 36. 6 AP
Note: K = Knowledge C = Comprehension AN = Analysis AP = Application
,
, [DOCUMENT TITLE]
SUMMARY OF QUESTIONS BY LEVEL OF DIFFICULTY (LOD)
Item SO LOD Item SO LOD Item SO LOD Item SO LOD Item SO LOD
Exercises
1. 1 H 10. 3 E 19. 3 E 28. 5 M 37. 6 E
2. 1 M 11. 3 E 20. 3 H 29. 5 M 38. 6 M
3. 1 E 12. 3 E 21. 3 E 30. 5 M 39. 6 H
4. 2 E 13. 3 M 22. 3,6 M 31. 5 H 40. 6 M
5. 2 M 14. 3 E 23. 3,5 H 32. 5 H 41. 6 M
6. 2 M 15. 3 E 24. 4 M 33. 5 E
7. 2 E 16. 3 M 25. 4 M 34. 5 M
8. 2 M 17. 3 H 26. 4 E 35. 5 H
9. 2 E 18. 3 M 27. 4 E 36. 6 M
Note: E = Easy M = Medium H=Hard
,Accounting Principles 6th Canadian Edition (Volume 1) Weygandt Kieso Kimmel Trenholm Kinnear Barlow
CHAPTER STUDY OBJECTIVES
1. Identify The Use And Users Of Accounting And The Objective Of Financial
Reporting. Accounting Is The Information System That Identifies, Records, And
Communicates The Economic Events Of An Organization To A Wide Variety Of Interested
Users. Good Accounting Is Important To People Both Inside And Outside The
Organization. Internal Users, Such As Management, Use Accounting Information To Plan,
Control, And Evaluate Business Operations. External Users Include Investors And
Creditors, Among Others. Accounting Data Are Used By Investors (Owners Or Potential
Owners) To Decide Whether To Buy, Hold, Or Sell Their Financial Interests. Creditors
(Suppliers And Bankers) Evaluate The Risks Of Granting Credit Or Lending Money Based
On The Accounting Information. The Objective Of Financial Reporting Is To Provide Useful
Information To The Investors And Creditors Who Make These Decisions. Users Need
Information About The Business’s Ability To Earn A Profit And Generate Cash. For Our
Economic System To Function Smoothly, Reliable And Ethical Accounting And Financial
Reporting Are Critical.
2. Compare Different Forms Of Business Organizations And Explain How Canadian
Accounting Standards Apply To These Organizations. The Most Common Examples
Of Business Organizations Are Proprietorships, Partnerships, And Corporations.
Generally Accepted Accounting Principles Are A Common Set Of Guidelines That Are
Used To Prepare And Report Accounting Information. In Canada, There Are Two Sets
Of Standards For Profit- Oriented Businesses. Publicly Accountable Enterprises Follow
International Financial Reporting Standards (IFRS) And Private Enterprises Have The
Choice Of Following IFRS Or Accounting Standards For Private Enterprises (ASPE).
The Economic Entity Concept Requires The Business Activities Of Each Economic Entity
To Be Kept Separate From The Activities Of Its Owner And Other Economic Entities. The
Going Concern Assumption Presumes That A Business Will Continue Operations For
Enough Time To Use Its Assets For Their Intended Purpose And To Fulfill Its
Commitments.
3. Describe The Components Of The Financial Statements And Explain The
Accounting Equation. Assets, Liabilities, And Owner’s Equity Are Reported In The
Balance Sheet. Assets Are Resources Owned Or Controlled By A Business That Are
Expected To Provide Future Services Or Benefits. Liabilities Are Current Obligations
Arising From Past Events To Make Future Payments Of Assets Or Services. Owner’s
Equity Is The Owner’s Claim On The Company’s Assets And Is Equal To Total Assets
Minus Total Liabilities. The Balance Sheet Is Based On The Accounting Equation: Assets
= Liabilities + Owner’s Equity.
The Income Statement Reports The Profit Or Loss For A Specified Period Of Time. Profit Is
Equal To Revenues Minus Expenses. Revenues Are The Increase In Assets, Or Decrease
In Liabilities, That Result From Business Activities That Are Done To Earn Profit. Expenses
Are The Cost Of Assets Consumed Or Services Used In A Company’s Ordinary Business
Activities. They Are Decreases In Assets Or Increases In Liabilities, Excluding Withdrawals
Made By The Owners, And Result In A Decrease To Owner’s Equity.
The Statement Of Owner’s Equity Summarizes The Changes In Owner’s Equity During The
Period. Owner’s Equity Is Increased By Investments By The Owner And Profits. It Is
Decreased By Drawings And Losses. Investments Are Contributions Of Cash Or Other
Assets By Owners.
, [DOCUMENT TITLE]
Drawings Are Withdrawals Of Cash Or Other Assets From The Business For The Owner’s
Personal Use. Owner’s Equity In A Partnership Is Referred To As Partners’ Equity And In A
Corporation As Shareholders’ Equity.
,Accounting Principles 6th Canadian Edition (Volume 1) Weygandt Kieso Kimmel Trenholm Kinnear Barlow
A Cash Flow Statement Summarizes Information About The Cash Inflows (Receipts) And
Outflows (Payments) For A Specific Period Of Time.
4. Determine What Events Are Recognized In The Financial Statements And How The
Events Are Measured. Only Events That Cause Changes In Assets, Liabilities, Or
Owner’s Equity Are Recorded. Recognition Is The Process Of Recording Items And
Measurement Is The Process Of Determining The Amount That Should Be Recognized.
The Cost Principle States That Assets Should Be Recorded At Their Historical (Original)
Cost. Fair Value May Be A More Appropriate Measure For Certain Types Of Assets.
Generally Fair Value Is The Amount The Asset Could Be Sold For In The Market. The
Monetary Unit Assumption Requires That Only Transaction Data That Can Be Expressed
As An Amount Of Money Be Included In The Accounting Records, And It Assumes That
The Monetary Unit Is Stable.
5. Analyze The Effects Of Business Transactions On The Accounting Equation. Each
Business Transaction Must Have A Dual Effect On The Accounting Equation. For Example,
If An Individual Asset Is Increased, There Must Be A Corresponding (1) Decrease In
Another Asset,
(2) Increase In A Liability, And/Or (3) Increase In Owner’s Equity.
6. Prepare Financial Statements. The Income Statement Is Prepared First. Expenses Are
Deducted From Revenues To Calculate The Profit Or Loss For A Specific Period Of Time.
Then The Statement Of Owner’s Equity Is Prepared Using The Profit Or Loss Reported In
The Income Statement. The Profit Is Added To (Losses Are Deducted From) The Owner’s
Equity At The Beginning Of The Period. Drawings Are Then Deducted To Calculate
Owner’s Equity At The End Of The Period. A Balance Sheet Reports The Assets,
Liabilities, And Owner’s Equity Of A Business As At The End Of The Accounting Period.
The Owner’s Equity At The End Of Period, As Calculated In The Statement Of Owner’s
Equity, Is Reported In The Balance Sheet In The Owner’s Equity Section.
, [DOCUMENT TITLE]
EXERCISES
Exercise 1
Ogilvie Homes Is A Business Owned By Joe Ogilvie. The Accounting For This Business Is Done
By Joe’s Sister Leigh. Leigh Is Currently Preparing The 2013 Year End Financial Statements
Which Joe Will Use For Three Purposes:
1. To Submit With His Tax Returns;
2. To Support A Loan Application; And
3. To Help Him Evaluate The Success Of The Business.
Instructions
a. For Each Of The Three Purposes Identified, Describe The Information Needs The User
Will Fulfill Based On Ogilvie Home’s Financial Statements.
b. Leigh Has Suggested That She Can Help Joe Out By Recording Some January 2014 Revenue
In December 2013. She Feels This Is Reasonable Because It Is Just A Slight Timing
Difference And So “Not Really Dishonest”. Comment On The Ethical Implications Of This
Suggestion And Explain How Each Of The Three Users’ Needs May Be Affected If Leigh
Implements Her Suggestion.
Solution Exercise 1 (10 Min)
a. Information Needs For Each Of The Three Users:
1. The Tax Department Will Want To Know Whether The Company Respects Tax Laws.
2. The Bank’s Loans Officer Will Evaluate The Risk Of Granting Credit Or Lending Money.
3. Joe Will Be Able To Assess Whether The Business Is Earning Him The Amount Of
Profit He Is Expecting In Comparison With Other Similar Businesses.
b. Leigh’s Action Would Be Unethical Because It Would Be Misrepresenting The True Results
Of The Business Operations For 2013. It Would Violate The Trust Each Financial Statement
User Places In The Accounting Information. The Effect On Each Of The Needs Identified In
Part A. Would Be:
1. The Tax Department Might Assess Higher Taxes Than Are Really Warranted.
2. The Bank Might Lend More Money To Joe Than They Would Otherwise, Based On
Expectations Of Higher Future Profits Than Can Actually Be Achieved Because The
Bank’s Projections Are Based On Incorrect Historical Information.
3. Joe Might Assume That Past Projects Were More Profitable Than They Really Were. He
Might Therefore Reject New Projects Based On The Assumption That He Does Not Need
To Increase His Sales Above Current Levels In Order To Earn Target Profit Levels.
Exercise 2
The Following Are Six Questions That Users Of Accounting Information Might Ask About Redpath
Auto Towing (Redpath).
Instructions
For Each Question, Indicate Who The Decision Maker Is And Whether It Is An External Or Internal User.
Decision Decision Maker External Or
Internal
,Accounting Principles 6th Canadian Edition (Volume 1) Weygandt Kieso Kimmel Trenholm Kinnear Barlow
A. Can Redpath’s Operations Generate Sufficient
Cash To Make Payments On A Term Loan?
, [DOCUMENT TITLE]
B. Does Redpath Have Sufficient Assets To Provide
Security For A Mortgage Loan?
C. Should Redpath Continue Its Current Business, Or
Look For More Profitable Opportunities In A
Different
Line Of Business?
D. Were The Profit Sharing Bonuses Paid To Unionized
Employees Equal To The Percentage Of Profit
Stated In The Employment Contract?
E. Was The Amount Of Goods And Services Taxes
(GST) That Redpath Remitted To The Tax
Department Equal To 5% Of Its Revenue, As
Required By Law?
F. Does Redpath Have Enough Money In The Bank
To Pay Out Drawings To The Owner?
Solution Exercise 2 (10 Min)
Decision Decision Maker External Or
Internal
A. Can Redpath’s Operations Generate Sufficient Banker External
Cash To Make Payments On A Term Loan?
B. Does Redpath Have Sufficient Assets To Provide Banker/Lender External
Security For A Mortgage Loan?
C. Should Redpath Continue Its Current Business, Or Management Internal
Look For More Profitable Opportunities In A
Different Line Of Business?
D. Were The Profit Sharing Bonuses Paid To Employee Union External
Unionized Employees Equal To The Percentage Of
Profit Stated In The Employment Contract?
E. Was The Amount Of Goods And Services Taxes Tax Assessor External
(GST) That Redpath Remitted To The Tax (Canada Revenue
Department Agency)
Equal To 5% Of Its Revenue, As Required By Law?
F. Does Redpath Have Enough Money In The Bank Owner Internal
To Pay Out Drawings To The Owner?
Exercise 3
Jamenac Company Recently Released Its First Set Of Financial Statements. Below Is A List Of
Potential Users Of The Financial Statements.
1. Labour Union
2. Employees
3. Canadian Imperial Bank Of Commerce
4. CRA
5. Potential Shareholders/ Investors
6. Sales Manager
7. Marketing Manager
8. Economic Planners
9. Provincial Securities Commission
, [DOCUMENT TITLE]
Accounting Principles 6th Canadian Edition
(Volume 1) Weygandt Kieso Kimmel Trenholm
Kinnear Barlow (Test Bank All Chapters, 100%
Original Verified, A+ Grade) Answers At The End
Of Each Chapter (Chapter 1-10)
CHAPTER 1
ACCOUNTING IN ACTION
SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM’S
TAXONOMY
Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT
Exercises
1. 1 C 10. 3 K 19. 3 K 28. 5 C 37. 6 AP
2. 1 C 11. 3 K 20. 3 AP 29. 5 C 38. 6 AP
3. 1 K 12. 3 K 21. 3 K 30. 5 C 39. 6 AP
4. 2 N 13. 3 AP 22. 3 AP 31. 5 C 40. 6 AP
5. 2 C 14. 3 AP 23. 3,5 AN 32. 5 C 41. 6 AP
6. 2 C 15. 3 AP 24. 4 K 33. 5 K
7. 2 C 16. 3 AP 25. 4 C 34. 5 C
8. 2 K 17. 3 AP 26. 4 C 35. 5 AP
9. 2 K 18. 3 C 27. 4 K 36. 6 AP
Note: K = Knowledge C = Comprehension AN = Analysis AP = Application
,
, [DOCUMENT TITLE]
SUMMARY OF QUESTIONS BY LEVEL OF DIFFICULTY (LOD)
Item SO LOD Item SO LOD Item SO LOD Item SO LOD Item SO LOD
Exercises
1. 1 H 10. 3 E 19. 3 E 28. 5 M 37. 6 E
2. 1 M 11. 3 E 20. 3 H 29. 5 M 38. 6 M
3. 1 E 12. 3 E 21. 3 E 30. 5 M 39. 6 H
4. 2 E 13. 3 M 22. 3,6 M 31. 5 H 40. 6 M
5. 2 M 14. 3 E 23. 3,5 H 32. 5 H 41. 6 M
6. 2 M 15. 3 E 24. 4 M 33. 5 E
7. 2 E 16. 3 M 25. 4 M 34. 5 M
8. 2 M 17. 3 H 26. 4 E 35. 5 H
9. 2 E 18. 3 M 27. 4 E 36. 6 M
Note: E = Easy M = Medium H=Hard
,Accounting Principles 6th Canadian Edition (Volume 1) Weygandt Kieso Kimmel Trenholm Kinnear Barlow
CHAPTER STUDY OBJECTIVES
1. Identify The Use And Users Of Accounting And The Objective Of Financial
Reporting. Accounting Is The Information System That Identifies, Records, And
Communicates The Economic Events Of An Organization To A Wide Variety Of Interested
Users. Good Accounting Is Important To People Both Inside And Outside The
Organization. Internal Users, Such As Management, Use Accounting Information To Plan,
Control, And Evaluate Business Operations. External Users Include Investors And
Creditors, Among Others. Accounting Data Are Used By Investors (Owners Or Potential
Owners) To Decide Whether To Buy, Hold, Or Sell Their Financial Interests. Creditors
(Suppliers And Bankers) Evaluate The Risks Of Granting Credit Or Lending Money Based
On The Accounting Information. The Objective Of Financial Reporting Is To Provide Useful
Information To The Investors And Creditors Who Make These Decisions. Users Need
Information About The Business’s Ability To Earn A Profit And Generate Cash. For Our
Economic System To Function Smoothly, Reliable And Ethical Accounting And Financial
Reporting Are Critical.
2. Compare Different Forms Of Business Organizations And Explain How Canadian
Accounting Standards Apply To These Organizations. The Most Common Examples
Of Business Organizations Are Proprietorships, Partnerships, And Corporations.
Generally Accepted Accounting Principles Are A Common Set Of Guidelines That Are
Used To Prepare And Report Accounting Information. In Canada, There Are Two Sets
Of Standards For Profit- Oriented Businesses. Publicly Accountable Enterprises Follow
International Financial Reporting Standards (IFRS) And Private Enterprises Have The
Choice Of Following IFRS Or Accounting Standards For Private Enterprises (ASPE).
The Economic Entity Concept Requires The Business Activities Of Each Economic Entity
To Be Kept Separate From The Activities Of Its Owner And Other Economic Entities. The
Going Concern Assumption Presumes That A Business Will Continue Operations For
Enough Time To Use Its Assets For Their Intended Purpose And To Fulfill Its
Commitments.
3. Describe The Components Of The Financial Statements And Explain The
Accounting Equation. Assets, Liabilities, And Owner’s Equity Are Reported In The
Balance Sheet. Assets Are Resources Owned Or Controlled By A Business That Are
Expected To Provide Future Services Or Benefits. Liabilities Are Current Obligations
Arising From Past Events To Make Future Payments Of Assets Or Services. Owner’s
Equity Is The Owner’s Claim On The Company’s Assets And Is Equal To Total Assets
Minus Total Liabilities. The Balance Sheet Is Based On The Accounting Equation: Assets
= Liabilities + Owner’s Equity.
The Income Statement Reports The Profit Or Loss For A Specified Period Of Time. Profit Is
Equal To Revenues Minus Expenses. Revenues Are The Increase In Assets, Or Decrease
In Liabilities, That Result From Business Activities That Are Done To Earn Profit. Expenses
Are The Cost Of Assets Consumed Or Services Used In A Company’s Ordinary Business
Activities. They Are Decreases In Assets Or Increases In Liabilities, Excluding Withdrawals
Made By The Owners, And Result In A Decrease To Owner’s Equity.
The Statement Of Owner’s Equity Summarizes The Changes In Owner’s Equity During The
Period. Owner’s Equity Is Increased By Investments By The Owner And Profits. It Is
Decreased By Drawings And Losses. Investments Are Contributions Of Cash Or Other
Assets By Owners.
, [DOCUMENT TITLE]
Drawings Are Withdrawals Of Cash Or Other Assets From The Business For The Owner’s
Personal Use. Owner’s Equity In A Partnership Is Referred To As Partners’ Equity And In A
Corporation As Shareholders’ Equity.
,Accounting Principles 6th Canadian Edition (Volume 1) Weygandt Kieso Kimmel Trenholm Kinnear Barlow
A Cash Flow Statement Summarizes Information About The Cash Inflows (Receipts) And
Outflows (Payments) For A Specific Period Of Time.
4. Determine What Events Are Recognized In The Financial Statements And How The
Events Are Measured. Only Events That Cause Changes In Assets, Liabilities, Or
Owner’s Equity Are Recorded. Recognition Is The Process Of Recording Items And
Measurement Is The Process Of Determining The Amount That Should Be Recognized.
The Cost Principle States That Assets Should Be Recorded At Their Historical (Original)
Cost. Fair Value May Be A More Appropriate Measure For Certain Types Of Assets.
Generally Fair Value Is The Amount The Asset Could Be Sold For In The Market. The
Monetary Unit Assumption Requires That Only Transaction Data That Can Be Expressed
As An Amount Of Money Be Included In The Accounting Records, And It Assumes That
The Monetary Unit Is Stable.
5. Analyze The Effects Of Business Transactions On The Accounting Equation. Each
Business Transaction Must Have A Dual Effect On The Accounting Equation. For Example,
If An Individual Asset Is Increased, There Must Be A Corresponding (1) Decrease In
Another Asset,
(2) Increase In A Liability, And/Or (3) Increase In Owner’s Equity.
6. Prepare Financial Statements. The Income Statement Is Prepared First. Expenses Are
Deducted From Revenues To Calculate The Profit Or Loss For A Specific Period Of Time.
Then The Statement Of Owner’s Equity Is Prepared Using The Profit Or Loss Reported In
The Income Statement. The Profit Is Added To (Losses Are Deducted From) The Owner’s
Equity At The Beginning Of The Period. Drawings Are Then Deducted To Calculate
Owner’s Equity At The End Of The Period. A Balance Sheet Reports The Assets,
Liabilities, And Owner’s Equity Of A Business As At The End Of The Accounting Period.
The Owner’s Equity At The End Of Period, As Calculated In The Statement Of Owner’s
Equity, Is Reported In The Balance Sheet In The Owner’s Equity Section.
, [DOCUMENT TITLE]
EXERCISES
Exercise 1
Ogilvie Homes Is A Business Owned By Joe Ogilvie. The Accounting For This Business Is Done
By Joe’s Sister Leigh. Leigh Is Currently Preparing The 2013 Year End Financial Statements
Which Joe Will Use For Three Purposes:
1. To Submit With His Tax Returns;
2. To Support A Loan Application; And
3. To Help Him Evaluate The Success Of The Business.
Instructions
a. For Each Of The Three Purposes Identified, Describe The Information Needs The User
Will Fulfill Based On Ogilvie Home’s Financial Statements.
b. Leigh Has Suggested That She Can Help Joe Out By Recording Some January 2014 Revenue
In December 2013. She Feels This Is Reasonable Because It Is Just A Slight Timing
Difference And So “Not Really Dishonest”. Comment On The Ethical Implications Of This
Suggestion And Explain How Each Of The Three Users’ Needs May Be Affected If Leigh
Implements Her Suggestion.
Solution Exercise 1 (10 Min)
a. Information Needs For Each Of The Three Users:
1. The Tax Department Will Want To Know Whether The Company Respects Tax Laws.
2. The Bank’s Loans Officer Will Evaluate The Risk Of Granting Credit Or Lending Money.
3. Joe Will Be Able To Assess Whether The Business Is Earning Him The Amount Of
Profit He Is Expecting In Comparison With Other Similar Businesses.
b. Leigh’s Action Would Be Unethical Because It Would Be Misrepresenting The True Results
Of The Business Operations For 2013. It Would Violate The Trust Each Financial Statement
User Places In The Accounting Information. The Effect On Each Of The Needs Identified In
Part A. Would Be:
1. The Tax Department Might Assess Higher Taxes Than Are Really Warranted.
2. The Bank Might Lend More Money To Joe Than They Would Otherwise, Based On
Expectations Of Higher Future Profits Than Can Actually Be Achieved Because The
Bank’s Projections Are Based On Incorrect Historical Information.
3. Joe Might Assume That Past Projects Were More Profitable Than They Really Were. He
Might Therefore Reject New Projects Based On The Assumption That He Does Not Need
To Increase His Sales Above Current Levels In Order To Earn Target Profit Levels.
Exercise 2
The Following Are Six Questions That Users Of Accounting Information Might Ask About Redpath
Auto Towing (Redpath).
Instructions
For Each Question, Indicate Who The Decision Maker Is And Whether It Is An External Or Internal User.
Decision Decision Maker External Or
Internal
,Accounting Principles 6th Canadian Edition (Volume 1) Weygandt Kieso Kimmel Trenholm Kinnear Barlow
A. Can Redpath’s Operations Generate Sufficient
Cash To Make Payments On A Term Loan?
, [DOCUMENT TITLE]
B. Does Redpath Have Sufficient Assets To Provide
Security For A Mortgage Loan?
C. Should Redpath Continue Its Current Business, Or
Look For More Profitable Opportunities In A
Different
Line Of Business?
D. Were The Profit Sharing Bonuses Paid To Unionized
Employees Equal To The Percentage Of Profit
Stated In The Employment Contract?
E. Was The Amount Of Goods And Services Taxes
(GST) That Redpath Remitted To The Tax
Department Equal To 5% Of Its Revenue, As
Required By Law?
F. Does Redpath Have Enough Money In The Bank
To Pay Out Drawings To The Owner?
Solution Exercise 2 (10 Min)
Decision Decision Maker External Or
Internal
A. Can Redpath’s Operations Generate Sufficient Banker External
Cash To Make Payments On A Term Loan?
B. Does Redpath Have Sufficient Assets To Provide Banker/Lender External
Security For A Mortgage Loan?
C. Should Redpath Continue Its Current Business, Or Management Internal
Look For More Profitable Opportunities In A
Different Line Of Business?
D. Were The Profit Sharing Bonuses Paid To Employee Union External
Unionized Employees Equal To The Percentage Of
Profit Stated In The Employment Contract?
E. Was The Amount Of Goods And Services Taxes Tax Assessor External
(GST) That Redpath Remitted To The Tax (Canada Revenue
Department Agency)
Equal To 5% Of Its Revenue, As Required By Law?
F. Does Redpath Have Enough Money In The Bank Owner Internal
To Pay Out Drawings To The Owner?
Exercise 3
Jamenac Company Recently Released Its First Set Of Financial Statements. Below Is A List Of
Potential Users Of The Financial Statements.
1. Labour Union
2. Employees
3. Canadian Imperial Bank Of Commerce
4. CRA
5. Potential Shareholders/ Investors
6. Sales Manager
7. Marketing Manager
8. Economic Planners
9. Provincial Securities Commission
