MBA700 LSUS Yu Bai – Questions With Explained Well
Solutions
Financing Activities Correct Answer - transactions the company has with
investors and creditors
Investing Activities Correct Answer - transactions involving the
purchase and sale of resources that are expected to benefit the company
several years
Operating Activities Correct Answer - transactions that relate to the
primary operations of the company
Assets Correct Answer - resources of the company
Liabilities Correct Answer - creditors' claim to resources
Stockholders' Equity Correct Answer - owners claim to resources
Revenue Correct Answer - amount recognized when the company sells
products or provides services to customers
Expenses Correct Answer - cost of providing products and services and
other business activities during the current period
Net Income Correct Answer - difference between revenue and expenses
(aka earnings or profit)
Dividends Correct Answer - distributions to stockholders
Financial Statements Correct Answer - periodic reports published by the
company for the purpose of providing information to external users
Primary Financial Statements Correct Answer - income statement,
statement of stockholders' equity, balance sheet, statement of cash flows
Financial Reporting Correct Answer - process of providing financial
information to external users
Solutions
Financing Activities Correct Answer - transactions the company has with
investors and creditors
Investing Activities Correct Answer - transactions involving the
purchase and sale of resources that are expected to benefit the company
several years
Operating Activities Correct Answer - transactions that relate to the
primary operations of the company
Assets Correct Answer - resources of the company
Liabilities Correct Answer - creditors' claim to resources
Stockholders' Equity Correct Answer - owners claim to resources
Revenue Correct Answer - amount recognized when the company sells
products or provides services to customers
Expenses Correct Answer - cost of providing products and services and
other business activities during the current period
Net Income Correct Answer - difference between revenue and expenses
(aka earnings or profit)
Dividends Correct Answer - distributions to stockholders
Financial Statements Correct Answer - periodic reports published by the
company for the purpose of providing information to external users
Primary Financial Statements Correct Answer - income statement,
statement of stockholders' equity, balance sheet, statement of cash flows
Financial Reporting Correct Answer - process of providing financial
information to external users
