Examen
Financial Accounting Chapter 1 questions correctly answered.
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- Institución
Financial Accounting Chapter 1 questions correctly answered.
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Financial Accounting Chapter 1questions correctly answered.
Stockholders ANS - investors
Creditor ANS - lenders (banks)
- make money on loans by charging interest
Dividends ANS - cash payments that stockholders hope to receive; a portion of what the company
earned
Internal Decision Makers ANS - managers
- need info about the company's business activities to manage the operating, investing, and financing
activities of the firm
External Decision Makers ANS - stockholders and creditors
- need info about these same business activities to assess whether the company will be able to pay back
its debts with interest and pay dividends
Accounting System ANS - collects and processes (analyzes, measures, and records) financial info about
an organization and reports that info to decision makers
Business Activities ANS - 1) Financing Activities = borrowing or paying back money to lenders and
receiving additional funds from stockholders or paying them dividends
2) Investing Activities = buying or selling items such as plant and equipment used in the production of
beverages
3) Operating Activities = the day-to-day process of purchasing raw tea and other ingredients from
suppliers, manufacturing beverages, delivering them to customers, collecting cash from customers, and
paying suppliers
Financial Accounting ANS - - for external decision makers
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