UNIVERSITY. EXAM 2025/2026
QUESTIONS AND ANSWERS
The 3 forms of business organizations - ANS sole proprietorship, partnership, corporation
2 uses of financial information - ANS Internal (such as management, marketing, and finance)
External (such as shareholders, creditors, and regulators)
4 general purpose financial statements - ANS income statement, statement of retained
earnings, balance sheet, and statement of cash flows
What information do you take from the income statement to use on the statement of retained
earnings? - ANS Net income
What information do you take from the statement of retained earnings to use on the balance
sheet? - ANS Ending retained earnings
What information do you take from the statement of retained earnings to use on the statement
of cash flows? - ANS Ending cash
The 3 types of business activity - ANS financing, investing, operating
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