1.The Statement of Financial Position and the Statement of Changes in Equity are interrelated because: a. The beginning amount of retained earnings on the Statement of Changes in Equity b. The amount of assets on the Statement of Financial Position is reported on the c. The ending amount of each of the components of shareholders' equity on the is reported on the statement of financial position Statement of Changes in Equity. Statement of Changes in Equity is reported on the Statement of Financial Position d. The amount of liabilities on the Statement of Financial Position is reported on the Statement of Changes in Equity Which of the following is the usual order for current assets to be listed on a Statement of Financial Position by a private Canadian corporation? 2 a. Cash, receivables, prepaid expenses, inventories, trading investments b. Cash, trading investments, inventories, prepaid expenses, receivables c. Cash, receivables, inventories, trading investments, prepaid expenses d. Cash, trading investments, receivables, inventories, prepaid expenses 3. Which of the following represents an operating business activity? a. Repayment of the principal amount on a bank loan b. Purchase of property, plant and equipment assets for cash c. Cash collected from services rendered to customers d. Sale of a long-term investment. 4 A sales discount does not a. Provide the purchaser with a cash saving b. Reduce the amount of cash received from a credit sale. c. Reduce a contra revenue account d. Increase an operating expense account. If a company decided to record a cash outlay as an asset rather than as an expense, how would this decision affect the net income (profit) in the current period? a. Net income will be higher b. Net income will be lower. c. Net income will not be affected by this decision. d. Both assets and liabilities would be overstated