Accounting - Study Mode
[#1866] Which of the following is the internal user of financial statements?
Correct Answer
(D) Manager of the business
Explanation
Solution: Manager of the business is the internal user of financial statements. Internal users are people within a business organization who use financial information.
[#1867] ________ is the first phase of accounting cycle
Correct Answer
(A) Identifying an economic event or transaction
Explanation
Solution: Identifying an economic event or transaction is the first phase of accounting cycle, which includes any transaction involving the use or exchange of a company's assets.
[#1868] ______ is a separate legal entity whose total capital can be divided into many shares
Correct Answer
(C) Company
Explanation
Solution: Company is a separate legal entity whose total capital can be divided into many shares.
[#1869] An asset possesses which of the following?
Correct Answer
(A) Future economic benefits for the business
Explanation
Solution: An asset possesses future economic benefits for the business. An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide a future benefit.
[#1870] Liabilities are which of the following?
Correct Answer
(B) Obligations
Explanation
Solution: Liabilities are Obligations. Liabilities are defined as a company's legal financial debts or obligations that arise during the course of business operations.