-What Type of Entity Is Company I?
Small Proprietary $\quad$

question 26

Multiple Choice

$\begin{array} { | l | l | l | l | l | } \hline & \begin{array} { l } \text { Gross operating } \\\text { revenue } \\\text { \$ millions }\end{array} & \begin{array} { l } \text { Gross assets } \\\text { \$ millions }\end{array} & \begin{array} { l } \text { Total employees } \\\text { (full time) }\end{array} & \text { Company type } \\\hline \text { Company I } & 2 & 16 & 150 & \text { Proprietary } \\\hline \text { Company II } & 5 & 14 & 4 & \text { Proprietary } \\\hline \text { Company III } & 126 & 1900 & 580 & \text { Public } \\\hline\end{array}$
-What type of entity is company I?
Small proprietary $\quad$$\quad$ Large proprietary $\quad$$\quad$$\quad$ Disclosing entity

• A)Yes\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) No \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)Yes
• B)Yes \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)No \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)Maybe
• C)No \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) Yes \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)Yes
• D)No \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) Yes \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)Maybe

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Definitions:

Financing Activities

Transactions and events where a company raises funds to support its operations and expansions, typically involving equity and debt.

Net Cash

The amount of cash available after accounting for cash inflows and outflows, providing a clear picture of an entity's liquidity.

Investing Activities

Transactions and events that involve the acquisition or disposal of long-term assets and investments by a company.

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of a company.