Indiana University BUS-A200 Exam 1
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Practice questions for this set
Learn 1 /7 Study using Learn
Cash payments of equal amounts over time periods of equal length
Choose an answer
1 Perpetuity 2 Pension
3 Solvency 4 Annuity
Don't know?
Why is accounting called the Accounting tells the financial story of a company
language of business?
Financial Accounting External decision makers
, Managerial Accounting Internal decision makers
Role and Expectations of Creditors decisions related to lending money to the
company
What is meant by "claims to creditors have claims equal to the amount loaned
resources"? to the company
Operating Activities include transactions that relate to the primary
operations of the company, such as providing
products and services to customers and the
associated costs of doing so, like rent, salaries,
utilities, taxes, and advertising
Investing Activities transactions involving the purchase and sale of
resources that provide benefit for several years
Financing Activities transactions with investors and creditors, such as
issuing stock
Corporation a company that is legally separate from its owners,
stockholders have limited liability
Sole Proprietorship A business owned by one person
Partnership a business owned by two or more persons
Accounting Equation Assets = Liabilities + Owner's Equity
Assets total resources of a company
Examples of Assets cash, accounts receivable, supplies, inventory,
equipment, land, prepaid rent
Edit Save
Practice questions for this set
Learn 1 /7 Study using Learn
Cash payments of equal amounts over time periods of equal length
Choose an answer
1 Perpetuity 2 Pension
3 Solvency 4 Annuity
Don't know?
Why is accounting called the Accounting tells the financial story of a company
language of business?
Financial Accounting External decision makers
, Managerial Accounting Internal decision makers
Role and Expectations of Creditors decisions related to lending money to the
company
What is meant by "claims to creditors have claims equal to the amount loaned
resources"? to the company
Operating Activities include transactions that relate to the primary
operations of the company, such as providing
products and services to customers and the
associated costs of doing so, like rent, salaries,
utilities, taxes, and advertising
Investing Activities transactions involving the purchase and sale of
resources that provide benefit for several years
Financing Activities transactions with investors and creditors, such as
issuing stock
Corporation a company that is legally separate from its owners,
stockholders have limited liability
Sole Proprietorship A business owned by one person
Partnership a business owned by two or more persons
Accounting Equation Assets = Liabilities + Owner's Equity
Assets total resources of a company
Examples of Assets cash, accounts receivable, supplies, inventory,
equipment, land, prepaid rent
