ACCT 2101 EXAM 1 VOCAB questions
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All businesses are involved in three types of activity - CORRECT ANSWER ✔✔financing,
investing, and
operating
Sole proprietorship - CORRECT ANSWER ✔✔simple to establish, owner controlled, tax
advantages
Partnership - CORRECT ANSWER ✔✔simple to establish, broader skills and resources, tax
advantages
Corporation - CORRECT ANSWER ✔✔Easier to transfer ownership, easier to raise funds, no
personal liability
Assets - CORRECT ANSWER ✔✔Resources owned by a business
Internal Users of financial information - CORRECT ANSWER ✔✔Marketing, management,
finance, human resources
External Users of financial information - CORRECT ANSWER ✔✔creditors & inverstors
accounting information system - CORRECT ANSWER ✔✔keeps track of the results of each of
these business activities.
, Liabilities - CORRECT ANSWER ✔✔Obligations the company is to pay within the next year or
operating cycle, whichever is longer.
Stockholder's Equity - CORRECT ANSWER ✔✔Common Stock + Retained Earnings
Assets= - CORRECT ANSWER ✔✔Liability + Stockholder's Equity
Assets include: - CORRECT ANSWER ✔✔cash, accounts receivable, supplies, prepaid insurance,
equipment, accumulated depreciation (equipment)
Liabilities include: - CORRECT ANSWER ✔✔notes payable, accounts payable, interest payable,
unearned service revenue, salaries and wages payable
Stockholder's Equity include: - CORRECT ANSWER ✔✔common stock, retained earnings,
dividends, income summary
Revenues include: - CORRECT ANSWER ✔✔service revenue
Expenses include: - CORRECT ANSWER ✔✔Salaries and wages expanses, supplies expense, rent
expense, insurance expense, interest expense, depreciation expense
Four financial statements - CORRECT ANSWER ✔✔Income Statement, Retained Earnings
Statement, Balance Sheet, Statement of Cash Flows
Notes to the financial statements - CORRECT ANSWER ✔✔Clarify the financial statements.
Provide additional detail.
n answers rated A+ passed
All businesses are involved in three types of activity - CORRECT ANSWER ✔✔financing,
investing, and
operating
Sole proprietorship - CORRECT ANSWER ✔✔simple to establish, owner controlled, tax
advantages
Partnership - CORRECT ANSWER ✔✔simple to establish, broader skills and resources, tax
advantages
Corporation - CORRECT ANSWER ✔✔Easier to transfer ownership, easier to raise funds, no
personal liability
Assets - CORRECT ANSWER ✔✔Resources owned by a business
Internal Users of financial information - CORRECT ANSWER ✔✔Marketing, management,
finance, human resources
External Users of financial information - CORRECT ANSWER ✔✔creditors & inverstors
accounting information system - CORRECT ANSWER ✔✔keeps track of the results of each of
these business activities.
, Liabilities - CORRECT ANSWER ✔✔Obligations the company is to pay within the next year or
operating cycle, whichever is longer.
Stockholder's Equity - CORRECT ANSWER ✔✔Common Stock + Retained Earnings
Assets= - CORRECT ANSWER ✔✔Liability + Stockholder's Equity
Assets include: - CORRECT ANSWER ✔✔cash, accounts receivable, supplies, prepaid insurance,
equipment, accumulated depreciation (equipment)
Liabilities include: - CORRECT ANSWER ✔✔notes payable, accounts payable, interest payable,
unearned service revenue, salaries and wages payable
Stockholder's Equity include: - CORRECT ANSWER ✔✔common stock, retained earnings,
dividends, income summary
Revenues include: - CORRECT ANSWER ✔✔service revenue
Expenses include: - CORRECT ANSWER ✔✔Salaries and wages expanses, supplies expense, rent
expense, insurance expense, interest expense, depreciation expense
Four financial statements - CORRECT ANSWER ✔✔Income Statement, Retained Earnings
Statement, Balance Sheet, Statement of Cash Flows
Notes to the financial statements - CORRECT ANSWER ✔✔Clarify the financial statements.
Provide additional detail.
