Chapter 1, Problem 1E

To determine

Concept Introduction:

Identifying activities:

The activities which are identified as economic activities. The identifying activities include selecting transactions and events for recording in the books of accounts and then communicating them.

Recording activities:

Recording activities are the activities which represents the recording of an event in the books of account for the preparation of financial statements.

Communicating activities:

The activities which includes preparation, analysis and interpretation of financial statements are termed as communicating activities.

To classify:

The given activities as (I)Identifying activities, (R) Recording activities and (C) Communicating activities −

1. Analysing and interpreting reports
2. Presenting financial information
3. Keeping a log of service costs
4. Measuring the costs of a product
5. Preparing financial statements
6. Acquiring knowledge of revenue transactions
7. Observing transactions and events
8. Registering cash sales of products sold