20. What are liabilities? a. outsider claims on business's assets b. insider claims on business's assets c. increases in owner's equity earned by delivering goods or services d. economic resources of business

21. Main function of financial institutions is to ___ a. offer trust services b. offer chequing and savings accounts c. facilitate the flow of money from sectors with surpluses to those with deficits d. provide loans to small businesses

22. To assure investors and other outsiders that financial statements are accurate, hire a public accounting firm to a. produce an internal audit b. provide tax advice c. track down funds that are shown on the financial statements d. take over all of its accounting functions

23. Outside equity financing that is provided in return for part ownership of borrowing firm is ____ a. debt financing b. trade-credit c. angel money d. venture capital

24. Primary function of bank of canada is to : a. charter new banks b. appoint its board's members c. regulate the supply of money in Canada to help maintain a healthy economy

25. Transactions affecting owner's equity include a. owner withdrawals and owner investments b. purchases of assets for cash c. purchases of assets on account d. only owner investments