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BUS-A 100 Final Exam Latest Update Exam | Questions and
Verified Answers | 100% Correct | Grade A +
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.
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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).
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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 Exchange Commission (SEC) - ANSWER U.S.
government organization (1934), purpose to maintain fair and
truthful capital markets for public corporations. Provide
standards for the creation of financial statements.
BUS-A 100 Final Exam Latest Update Exam | Questions and
Verified Answers | 100% Correct | Grade A +
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.
,2|Page
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).
, 3|Page
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 Exchange Commission (SEC) - ANSWER U.S.
government organization (1934), purpose to maintain fair and
truthful capital markets for public corporations. Provide
standards for the creation of financial statements.
