BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Monetary unit assumption
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Economic entity assumption
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Cost principle
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Nothing
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Detailed explanation-1: -Simply put, a creditor is an individual, business or any other entity that is owed money because they have provided a service or good, or loaned money to another entity. As a business owner, there are two types of creditors you’re likely to be dealing with on a regular basis-(i) loans and (ii) trade creditors.
Detailed explanation-2: -Finance activities include the issuance and repayment of equity, payment of dividends, issuance and repayment of debt, and capital lease obligations. Companies that require capital will raise money by issuing debt or equity, and this will be reflected in the cash flow statement.
Detailed explanation-3: -Liabilities are what a business owes. It could be money, goods, or services. They are the opposite of assets, which are what a business owns.
Detailed explanation-4: -Overview: The balance sheet-also called the Statement of Financial Position-serves as a snapshot, providing the most comprehensive picture of an organization’s financial situation. It reports on an organization’s assets (what is owned) and liabilities (what is owed).