ACC 100 (A + Guaanteed)

What is a sole proprietorship? correct answers Single owner What is a partnership? correct answers Two or more owners What is a corporation? correct answers Many owners, can issue shares/bonds What are non-business entities purpose? correct answers Other than generating income What are financing activities? correct answers Ways a company gets their money What is a creditor? correct answers Someone the company owes money to What are investing activities? correct answers Doing something with future economic benefit What are operating activities? correct answers Day-to-day costs If something comes into the company as an investing activity it goes out as a? correct answers Investing activity Who are the users of accounting info? (2) correct answers Internal and External users What is an external user? correct answers Shareholders, creditors What is an internal user? correct answers Managers What is the economic entity concept? correct answers Personal accounts separate from company accounts What is the cost principle? correct answers Record assets for what you paid for them What is the going concern? correct answers Assumption an entity is not in liquidation What are the 5 qualitative characteristics? correct answers Comparability, Relevance, Understandability, Comparability, Reliability What is comparability? (qualitative characteristics) correct answers Able to compare two companies What is relevance? (qualitative characteristics) correct answers Is the info relevant and up to date What is understandability? (qualitative characteristics) correct answers Is the info understandable to someone needing the info