CHAPTER 1 Introduction to Financial Statements Learning Objectives 1. Identify the forms of business organization and the uses of accounting information. 2. Explain the three principal types of business activity. 3. Describe the four financial statements, and how they are prepared. 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 6. 1 C 10. 3 C 14. 3 K 18. 3 K 2. 1 K 7. 2 C 11. 3 K 15. 3 K 19. 3 C 3. 1 K 8. 3 K 12. 3 C 16. 3 AP 20. 3 K 4. 1 C 9. 3 C 13. 3 AP 17. 3 C 21. 3 C 5. 1 C Brief Exercises 1. 1 K 4. 3 C 6. 3 K 8. 3 AP 10. 3 K 2. 1 K 5. 3 AP 7. 3 K 9. 3 AP 11. 3 K 3. 2 K Do It! Exercises 1. 1 C 2. 2 K 3a. 3 AP 3b. 3 K Exercises 1. 1, 2, 3 K 5. 3 AP 9. 3 AN 12. 3 AP 15. 3 AP 2. 2 C 6. 3 AP 10. 3 AP 13. 3 AP 16. 3 AN 3. 2, 3 C 7. 3 AP 11. 3 AP 14. 3 AP 17. 3 K 4. 3 AP 8. 3 C Problems: Set A