CHAPTER 1 THE PURPOSE AND USE OF FINANCIAL STATEMENTS LEARNING OBJECTIVES 1. Identify the uses and users of accounting information. 2. Describe the primary forms of business organization. 3. Explain the three main types of business activity. 4. Describe the purpose and content of each of the financial statements. SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT Questions 1. 1 K 7. 2 C 13. 3 C 19. 4 K 25. 4 C 2. 1 C 8. 2 C 14. 3 C 20. 4 K 26. 4 C 3. 1 K 9. 2 C 15. 3 C 21. 4 AP 27. 4 K 4. 1 C 10. 2 C 16. 3 C 22. 4 C 28. 4 C 5. 1 C 11. 2 C 17. 3 C 23. 4 K 29. 4 C 6. 1 C 12. 2 K 18. 3 C 24. 4 C 30. 4 C Brief Exercises 1. 1 C 4. 3 C 7. 4 AP 10. 4 C 2. 1 C 5. 3 C 8. 4 K 11. 4 AN 3. 2 K 6. 4 AP 9. 4 K Exercises 1. 1 C 4. 3 C 7. 4 AN 10. 4 AP 13. 4 AP 2. 2 C 5. 4 K 8. 4 AN 11. 4 AP 14. 4 AN 3. 3 K 6. 4 AP 9. 4 AP 12. 4 AP Problems: Set A and B 1. 1 C 3. 3 C 5. 4 AP 7. 4 AP 9. 4 AN 2. 2 C 4. 4 K 6. 4 AN 8. 4 AN 10. 4 AN Cases 1. 3,4 C 3. 3,4 AN 5. 3,4 AN 7. 4 AN 9 1,3 C