Why does the user of an income statement know the time period that it covers? 14. need to ey say, "This accounting course is a waste of my time when I don't even want to be an accountant" Explain to your friends how accounting is impor 15. Why is the revenue recognition principle needes tant and relevant to all students, including those studying marketing and human resources You have decided to start a business. What would you sell? Identify the three forms of business orga nization you could choose and describe their char- acteristics. Which form of business is best for your business and wh Th What does it require? Identify four financial statements that a ship presents to its owner and other users. 16. 4. 17. Jordan thinks the income statement and the ba. ance sheet look the same. Explain to Jordan what information is presented on the income statement and what is presented on the balance sheet 5. Review Organico's financial statements presented 18. Assets are resources that provide future benefit to in the chapter for the month ended March 31, 2017 Review the balance sheet and determine the busi- ness form Hailey Walker has chosen to organize her business. a business. Explain how cash, accounts receivable, and supplies provide future benefit to a business. 19. Rachel believes that the terms accounts receivable and accounts payable can be used interchange- ably. Rachel says, "They both show up on the bal- ance sheet and they both are in the accountin equation. Do you agree with Rachel? Explain. 6. Identify two organizations for which accounting information is available in Appendix II at the end of the book. 7. Identify three types of organizations that can be formed as either profit-oriented businesses, gov ernment entities, or not-for-profit organizations. 20. In the first year of selling frozen yogurt, the owner 8. Identifg four external and internal users and their 9. Describe the internal role of accounting for 10. Tyler is considering a career in accounting, but is r Swirl invested $10,000 into the business and sold $5,000 of frozen yogurt. The accountant has re- corded $15,000 of revenue. What do accountants mean by the term revenue? Has the accountant at Swirl recorded revenue correctly or incorrectly? Explain. uses of accounting information. organizations. 21. What transactions increase and decrease equity? 22. Your favourite celebrity has asked you to prepare a not sure what career options are available within accounting. Help Tyler with his decision by iden- tifying three main areas of accounting for a counting professionals. For each accounting area, identify three accounting-related career opportunities. personal balance sheet for her. Define (a) assets (b) liabilities, and (d) equity. Identify some of her personal assets and liabilities. Explain to her what her equity represents. 11. Identify the auditing firm that audited the financial statements of WestJet in Appendix III. What is the purpose of accounting in society? What ethical issues might accounting professionals face in dealing with confidential information? ments (statement of chang sheet, income statement and the statement flows) in a specific order? Identifg the speci der. Identify how the financial statements are rtant to prepare the financial state- es in equity, balance of cash 12. 13. interrelated