UNIT

Accounting:

Can be divided into two major areas – financial accounting and managerial accounting

Is the means by which business information is communicated to the stakeholders

Is sometimes called the language of business

All answers are correct

Points Received: 1 of 1

Comments:

Question 2. Question :

The resources a business owns are called __________.

assets

liabilities

products

stockholder’s equity

Points Received: 1 of 1

Comments:

Question 3. Question :

Generally accepted accounting principles (GAAP):

Determine the proper content of financial statements

Are accounting “rules”

Are established by the Financial Accounting Standards Board in the United States

All answers are correct

Comments:

Question 4. Question :

Investing activities of the business include:

Activities to obtain the necessary resources (assets) to start the business

Activities that increase assets from selling products

Activities to obtain funds to begin and operate a business

None of these choices describe investing activities

Question 5. Question :

A primary advantage of the corporate form is the ability to obtain large amounts of resources by issuing __________.

stock

cash

loans

products

Points Received: 1 of 1

Comments:

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