1. Martingrove Ltd. purchases inventory FOB destination on December 29, and the goods are received on January The company records the transaction in January. Which of the following statements about qualitative characteristics or assumptions is correct?

a)	Timely is violated

b)	Faithful is followed

c)	Verifiable is violated

d)	Unit-of-measure is followed

e)	Relevant is violated

2. Which business sector(s) would Petro-Canada be in?

a)

primary

b)	all three sectors

c)

secondary

d)	secondary and tertiary

e)

tertiary

3. Which of the following represents a connection between the statement of cash flows and the other financial statements?

a)	The ending cash balance appears on both the statement of cash flows and the balance sheet.

b)	Owners' Equity appears on both the statement of cash flows and the statement of retained earnings.

c)	Retained Earnings appears on both the statement of cash flows and the statement of retained earnings.

d)	Net income appears on both the statement of cash flows and the statement of retained earnings.

e)	The statement of cash flows is not connected to any other financial statement.

4. A company changed its inventory costing formula from specific identification to FIFO this year, and disclosed the reason and effect of the change on its financial statements. Which of the following is correct?

a)	timely - followed

b)	unit-of-measure - violated

c)	faithful - violated

d)	comparable - followed

e)	going concern - violated