BRAINSCAPE1
BUS-A200 (1-3) Exam with complete solutions latest
version
1. Assets: economic value that an individual or company owns or controls with the expectation that it will provide a
future benefit. (Investopedia)
1. A business can borrow (cash) from creditors to buy necessary items but have to pay back creditors in the future.
(liability)
2. A business can acquire assets form investors. When a business acquires assets from investors, it ensures their proper
use for the investors' benefit and grants them ownership, allowing them to share in the profits. (common stock)
3. A business can acquire assets from operations. A business can gain assets through operations by using existing assets
to generate more.
2. liability: An amount owed by a business to the creditors
3. common stock: A class of stock that represents equity ownership in a corporation that have voting rights on
major issues, in a company.
4. Stockholders: people or entities that own stock in a corporation and therefore are its owners
5. Stockholders' Equity: The owners' claim to assets.
6. Net Increase vs net decreases: Net increases in assets generated from operations are commonly
called earnings or income.
Net decreases in assets caused by operations are class losses.
As a result of their ownership status, the stockholders reap the benefits and sutter the sacrifices that a business
experiences from its operations
7. dividend: The distribution of earned assets. to stockholders
BRAINSCAPE1
BUS-A200 (1-3) Exam with complete solutions latest
version
1. Assets: economic value that an individual or company owns or controls with the expectation that it will provide a
future benefit. (Investopedia)
1. A business can borrow (cash) from creditors to buy necessary items but have to pay back creditors in the future.
(liability)
2. A business can acquire assets form investors. When a business acquires assets from investors, it ensures their proper
use for the investors' benefit and grants them ownership, allowing them to share in the profits. (common stock)
3. A business can acquire assets from operations. A business can gain assets through operations by using existing assets
to generate more.
2. liability: An amount owed by a business to the creditors
3. common stock: A class of stock that represents equity ownership in a corporation that have voting rights on
major issues, in a company.
4. Stockholders: people or entities that own stock in a corporation and therefore are its owners
5. Stockholders' Equity: The owners' claim to assets.
6. Net Increase vs net decreases: Net increases in assets generated from operations are commonly
called earnings or income.
Net decreases in assets caused by operations are class losses.
As a result of their ownership status, the stockholders reap the benefits and sutter the sacrifices that a business
experiences from its operations
7. dividend: The distribution of earned assets. to stockholders
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