Chapter 3 Flashcards
Business can be said to engage in three fundamental types of activities. Its day-to-day core business would be called its ____1____ activities. These are the activities by which the firm earns money. In order to stay in business, the firm needs long term productive assets. Obtaining these assets would comprise its ____2____ activities. Finally, in order to make these investments, the firm needs to raise __3___ by engaging in ___4____
activities.
1) operating
2) investing
3) cash
4) financing
Long Term Liabilities
A) Operating
B) Investing
C) Financing
C) Financing
Current Assets
A) Operating
B) Investing
C) Financing
A) Operating
Current Liabilities
A) Operating
B) Investing
C) Financing
A) Operating
Equity
A) Operating
B) Investing
C) Financing
C) Financing
Long Term Investments
A) Operating
B) Investing
C) Financing
B) Investing
Property, Plant and Equipment
A) Operating
B) Investing
C) Financing
B) Investing
Expenses
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
D) Income Statement
Distributions
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
C) Statement of Stockholders Equity
Assets
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
B) Balance Sheet
Gains
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
D) Income Statement
Revenues
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
D) Income Statement
Liabilities
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
B) Balance Sheet
Contributions
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
C) Statement of Stockholders Equity
Losses
A) Statement of Cash Flows B) Balance Sheet C) Statement of Stockholders Equity D) Income Statement E) None of the above
D) Income Statement