Information about contingent liabilities may be found in a companys financial statements in the:

a. statement of financial position.

b. statement of changes in equity.

c.income statement.

d.notes to financial statements.

A dividend is a distribution of:

a.liabilities of a company to its shareholders.

b.revenue by a corporation to its owners.

c.accrued expenses to a corporations shareholders.

d.profit by a company to its shareholders.

Accounting for a partnership is similar to accounting for a sole trader, except that:

a. each partners share of equity must be recorded separately.

b. each partner has limited liability.

c. two income statements must be prepared.

d. tax must be calculated by the partnership on each partners share of profit.

The stewardship objective of financial reporting means that:

a. the objective of general purpose financial reports is to provide information that is useful to capital providers.

b. general purpose financial reports support stewardship function in entities where there is no separation of ownership from control.

c. managers use general purpose financial reports to show the shareholders that they are managing resources effectively.

d. the objective of general purpose financial reports is to provide information to users that is useful for making decisions about allocation of scarce resources.