AC210 Exam One Review

If there are investors and creditors involved, what type of cash flow is most likely happening?

• Operating

• Investing

• Financing

If Apple buys stock in IBM what type of activity would that be?

• Investing

• Operating

• Financing

How would paying taxes to the IRS be classified?

• Operating

• Investing

• Financing

When a company buys resources that last several years, this is most likely considered a _____ activity

• Operating

• Investing

• Financing

Resources of the company

• Liability

• Operating Activity

• Assets

• Stockholders Equity

Amounts owed to other people

• Asset

• Liability

• Stockholder's Equity

Distributions to Stockholders

• Liabilities

• Dividends

• Retained Earnings

• Assets

Sales of products or services

• Revenue

• Expense

• Liability

• Stockholders Equity

Cost of providing sales

• Asset

• Revenue

• Expense

• Liability

Name type of business: One person owns everything

• Partnership

• Corporation

• LLC

• Sole Proprietorship