BUS-A 100 Final Exam

Accounting - Answer- Recording of business transactions, preparation of summary reports, and analyzing financial information. Financial statements - Answer- Reports prepared from accounting systems, prepared objectively and impartially. Financial accounting - Answer- Records an reports available publicly. Financing activities - Answer- Transactions that raise expendable funds (equity and debt). Category associated with the Statement of Cash Flows. Examples: Financing activities - Answer- Borrowing or repaying loans, issuing stock, paying dividends. Investing activities - Answer- Transactions that the company uses to invest in assets that will be used in business operations. Category associated with the Statement of Cash Flows. Examples: Investing activities - Answer- Purchase and sale of fixed/long-term assets. Operating activities - Answer- Unclassified transactions that are involved in the daily functions of the business. Category associated with the Statement of Cash Flows. Examples: Operating activities - Answer- Selling goods/services, purchasing inventory, paying interest, paying suppliers and employees. Equity - Answer- Ownership claims over a business (equity investors/stockholders/shareholders). Also a measure of the portion of a company's assets that are owned outright. Debt - Answer- Borrowing money from investors or banks (not owners). Creditors - Answer- People or groups that loan money out (debt investors). Principal - Answer- The main amount of money borrowed, excluding interest. Loan contract - Answer- The specific terms/requirements of a loan. Maturity date - Answer- Date by which a loan is to be repaid in full (principal and interest). Collateral - Answer- Assets to be seized if a loan is not repaid. Default - Answer- Occurs when a borrower fails to pay back a loan. Securities and Exc