Asset correct answers Anything held by a company to produce value and that is held by a company to produce positive economic value
Liability correct answers A company's legal financial debts or obligations that arise during the course of business operations
Current liability correct answers C...
BUS 100 Final Exam || with Accurate Answers 100%.
Asset correct answers Anything held by a company to produce value and that is held by a company to produce positive economic value
Liability correct answers A company's legal financial debts or obligations that arise during the course of business operations
Current liability correct answers Company's short-term financial obligations that are due within one year or within a normal operating cycle.
Current Asset correct answers Includes Inventory
Fixed Asset correct answers Buildings and equipment
Intangible Asset correct answers Owned or controlled to produce value and held by a company to produce positive economic value
Difference between current liability and a long term liability correct answers Long term debt is an example of long term liability
What are retained earnings? correct answers The amount of net income left over for the business after it has paid out dividends to its shareholders. A business generates earnings that can be positive (profits) or negative (losses)
What is difference between accounts payable and accounts receivable correct answers Accounts receivable are the amounts owed to a company by its customers, while accounts payable are the amounts that a company owes to its suppliers.
Cash flow statement correct answers Financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company
What is listed on the cash flow statement? correct answers The cash flow statement includes only
inflows and outflows of cash and cash equivalents; it excludes transactions that do not directly affect cash receipts and payments
Net cash provided by operating activities correct answers Net cash from operating activities refers to the relative change in a company's cash position from one period to the next created by operating activities
Net cash used in investing activities correct answers Cash flow from investing activities is one of
the sections on the cash flow statement that reports how much cash has been generated or spent from various investment-related activities in a specific period
Net cash provided by financing activities correct answers Net cash provided by financing activities equals total cash inflows minus total cash outflows from the financing activities section and is the positive amount of cash that the company's financing activities contribute to its cash balance
Income Statement correct answers used for reporting a company's financial performance over a specific accounting period, with the other two key statements being the balance sheet and the statement of cash flows.
Total revenue (gross revenue) correct answers Gross revenue is the total amount of sales recognized for a reporting period, prior to any deductions. This figure indicates the ability of a business to sell goods and services, but not its ability to generate a profit. Deductions from gross revenue include sales discounts and sales returns.
Cost of good's sold correct answers Includes all costs directly involved in producing a product or
delivering a service. These costs can include labor, material, and shipping.
Operating expenses correct answers Costs a company incurs that are not related to the production
of a product. These expenses include items like payroll, rent, office supplies, utilities, marketing, insurance and taxes.
Depreciation correct answers Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy. Businesses can depreciate long-
term assets for both tax and accounting purposes.
Sarbanes-Oxley Act of 2002 correct answers The Sarbanes-Oxley Act of 2002 is a federal law that established sweeping auditing and financial regulations for public companies.
Why was Sarabanes-Oxley enacted correct answers Lawmakers created the legislation to help protect shareholders, employees and the public from accounting errors and fraudulent financial practices
Medium of Exchange correct answers An intermediary instrument or system used to facilitate the
sale, purchase or trade of goods between parties. For a system to function as a medium of exchange, it must represent a standard of value
Store of value correct answers A store of value is the function of an asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved. Example: Money, currency, or a commodity like a precious metal or financial capital.
Measure of worth correct answers Wealth measures the value of all the assets of worth owned by
a person, community, company, or country. Wealth is determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts. Essentially, wealth is the accumulation of scarce resources
What comprises the M1 Money supply? correct answers M1 is a narrow measure of the money supply that includes physical currency, demand deposits, traveler's checks, and other checkable deposits.
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