Answered: Creditors are: Multiple Choice people…

Creditors are: Multiple Choice people or organizations to whom a business owes money. shareholders of a business. customers of a business. people or organizations who owe money to a business.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 4Q: What are some of the reasons a business owner might choose the corporate form of business?

See similar textbooks

Related questions

Q: what factors will influence an owners decision concerning how to raise finance to establish a new…

A: Raising finance means raising capital for running the business and initiating its operations.…

Q: What is net income? What is a net loss? Why are owners interested in the income statement? Why are…

A: (Note: Since you have posted a multi-part question, we will solve the first three sub-parts for you.…

Q: Irrespective of the business entities whether they are big or small, is required to fulfill their…

A: i) Finance has a broader meaning and includes activities associated with investment, equity, debt,…

Q: What are business transactions called that increase owner’s equity as a result of providing a…

A: A liability is amount payable or obligation which results from past event, whose payment needs…

Q: If Firm A's business is to obtain savings from individuals and then invest them in financial assets…

A: Financial intermediary: It is a firm that goes about as the agent between two parties in financial…

Q: Being an entrepreneur, which non- banking financial institutions help is required to run the…

A: Non - banking financial institutions are the companies that have many functions similar to that of…

Q: Match each transaction to one of the following activities of an organization: financing activity(F),…

A: Three major categories of an organization’s business activities are as follows: Financing,…

Q: Bank Muscat LLC is an example of which of the following forms of business organization?

A: Solution: Option a. This will be the correct option only if the correct answer is not given in the…

Q: Which is related to accepting deposits and lending money for business and personal needs to earn…

A: A commercial bank is one of the financial institutions. It performs the activities of accepting…

Q: Is there a specific reason why someone decides to start a business

A: The term "sole proprietorship" refers to a person who establishes their own company by themselves.

Q: External users of financial accounting information include all of the following except ________.…

A: There are two types of users for financial accounting. 1. Internal users 2. external user Internal…

Q: why do businesses produce financial statements?

A: INTRODUCTION: Financial statements are detailed documents produced by the management of a company to…

Q: According to which concept the owners are considered to be different from the business [A] Business…

A: Accounting concepts are the rules or assumptions that must be followed whil preparation of financial…

Q: The business owner uses personal funds to purchase common stock in his company, what is the journal…

A: Lets understand the basics. Journal entry is required to make to record event or transaction occur…

Q: these include debts, obligations to pay, and claims of the creditors on the assets of the business.…

A: The financial statements of the business includes the income statement and balance sheet. The…

Q: What would increase the liabilities of a business entity? Please provide specific examples. 2. What…

A: The liabilities are the amount to be paid by the business in future period.

Q: Liabilities Are things of value used by the business in its operation. O a. b. Are future economic…

A: Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Statements prepared to know profit or loss and financial position of the business are called:…

A: Various statements are prepared to know the profit or loss and financial position of the business

Q: Why is it necessary for accountants to assume that business entity will remain a going concern?

A: Introduction: The concept of a going concern is crucial to accounting. It presupposes that a…

Q: Which is related to accepting deposits and lending money for business and personal needs to earn…

A: Financial Accounting:- Financial accounting is considered as the process of recording, summarizing…

Q: How do dividends affect owners’ equity? Are they treated as a business expense? Explain.

A: Dividends are referred to those returns which are provided to the shareholders, or stockholders of…

Q: The following statement suits best the definition of ASSETS: O a. The assets are expenses incurred…

A: Assets are considered as the resources of the business used to run the daily activity of the…

Q: The......of a business is the amount of income A-Revenue B-venture C-assest D-fund

A: A business is described as an organization or enterprising entity engaged in commercial,…

Q: It is defined as a business activity or event that affects a business financially

A: Business activities are related to the operations of the business. These activities are of different…

Q: What are the rights of creditors (claims against the assets of the company--creditors' equity) that…

A: The creditor is the person to whom the company owes money at the later date. Creditors are the one…

Q: A company is involved in investing activities when these: Multiple Choice activities involve…

A: Investing activities include buying and selling of long term assets such as building, Machinery,…

Q: Assets are the O a. resources owned by the business. O b. personal property of the owners. O c. c.…

A: A business asset is an item or resources of a value owned by the company which can be tangible or…

Q: External users of financial accounting information include all of the following except ________.A.…

A: Accounting is the process of recording, summarising and analysing accounting information for the…

Q: The owners' claims to the assets of the business are called ________. A.equity B.expenses…

A: As per the accounting equation, Assets = Liabilities + Equity and such relation always holds true.

Q: What is the owner’s right to the assets (claims to the assets) of the business called? Group of…

A: Solution: As per basic accounting equation: Assets = Liabilities + Owner's equity Therefore Lenders…

Q: Why is Accounting Entity Concept an important principle of accounting that a business should follow…

A: The accounting entity concept separates the owners and business entity. They both treated as…

Q: Factors that reflect the ability of a business to pay its debts and earn a reasonable amount of…

Q: Sources of financing a business include: Group of answer choices Raising capital owners Both…

A: Source of financing a business includes Both

Q: The amount business owes to others is known as: Revenue Expense Liabilities Assets

A: The different accounts in business balance sheet are described as assets, liabilities and owners'…

Q: Investors and creditors use the income statement to answer what types of inquiries regarding the…

A: 1. Income Statement - Income Statement shows the income earned and loss incurred by the organization…

Q: What requirement is imposed by the double-entry system in the recording of any business transaction?

A: “Since you have posted multiple questions, we will solve the first question for you. To get the…

Q: accounting records the impact of a business event when it occurs, regardless of whether the…

A: There are two concepts of accounting, which are used mostly. These are cash basis of accounting and…

Q: What business record shows the results of the proprietorship’s borrowing assets from the business,…

A: Proprietor’s Withdrawals: An owner's withdrawal, also known as a distribution, is a transfer of cash…

Q: The two types of external financing available to a business are: a. equity funds and debt b.…

A: The business needs an investment for the initiation of the activities. The sources of financing will…

Q: When did the business call accountable? 1. Business Activities are accountable when they are called…

A: The business calls accountable when business activities are the business transactions and business…

Question

Creditors are:
Multiple Choice
people or organizations to whom a business owes money.
shareholders of a business.
customers of a business.
people or organizations who owe money to a business.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following statements is true regarding business plans: A. A corporation is the only legal form of business ownership that should develop a business plan. B. The operating plan details information regarding the business's services. C. Owners often use business plans as a tool to help them achieve their objectives. D. Lending institutions do not usually require loan applicants to submit a business plan.
Which of the following is not considered a stakeholder of an organization? A. creditors B. lenders C. employees D. community residents E. a business in another industry
Which of the following is not considered a stakeholder of an organization?A. creditorsB. lendersC. employeesD. community residentsE. a business in another industry
what are the reasons why an individual venture into a business?
It is defined as a business activity or event that affects a business financially
Which of the following accounting concepts considers the investment made by the owner in the business as the liability of the business? a.Dual aspect concept , b.Money measurement concept , c.Business entity concept , d.Going concern concept
What are some of the reasons a business owner might choose the corporate form of business?
Describe the difference between the accounting function and the finance function? What purpose do they serve in the business? What activities take place in each of these two groups?
External users of financial accounting information include all of the following except ________. lenders such as bankers governmental agencies such as the IRS employees of a business potential investors
The primary objective of management accounting is O A. to provide management with information useful for planning and control of operations. O B. to provide banks and other creditors with information useful in making credit decisions. O. C. to provide the relevant taxation authorities with information about taxable income. O D. to provide shareholders and potential investors with useful information for decision making.
External users of financial accounting information include all of the following except ________.A. lenders such as bankersB. governmental agencies such as the IRSC. employees of a businessD. potential investors
For money to accrue to a business, it needs to: a.Have been earned by the business b.Have been received and earned by the business c.Have been received by the business