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Essay Details:
Essay text:
Recognize an ethical situation and the ethical issues involved.
2. Identify and analyze the principal elements in the situation.
3. Identify the alternatives, and weigh the impact of each alternative on various stakeholders.
Study Objective 3 - Explain the Three Principal Types of Business Activity
All businesses are involved in three types of activity. The accounting information system keeps track of the results of each of these activities.
? Financing activities ? Cash is often obtained from outside sources to start or expand a business. The two primary sources are:
? Borrowing from creditors which creates a liability
? bank loan (note payable)
? debt securities (bonds payable)
? goods on credit from suppliers (accounts payable)
? Issuing ownership interests in the corporation to investors (selling stock to shareholders)
? In addition, financing activities include using cash to pay dividends to stockholders...
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