What is a system in which people are free to produce the goods and services they choose?
Free enterprise system
100
Business with a single owner.
What is a sole proprietorship?
100
A business exists independently of its owner's personal holdings
What is business entity?
100
This is where accounting information is process by hand
What is manual accounting?
100
This type of accounting focuses on reporting information to external users.
What is financial accounting?
200
The amount of revenue earned above the expenses incurred to operate the business
What is a profit?
200
This type of business provides a service for a fee
What is a service business?
200
A period of time covered by an accounting report
What is accounting period?
200
Where financial information is recorded by entering it into a computer
What is computerized accounting?
200
This would be an example of who would use financial accounting reports
What are investors; individuals or institutions who loan money; local, state, and federal governments; workers, consumers, union leaders, and competitors?
300
Money supplied by investors,banks, or owners of a business. Refers to the dollar value of assets contributed to the business.
What is capital?
300
A type of business that buys raw materials, such as wood or iron ore, and transforms them into finished products through the use of labor
What is a manufacturing business?
300
Assumption that the business will continue to operate in the future
What is going concern?
300
These are summarized information about the financial status of a business
What are financial reports?
300
This type of accounting focuses on reporting information to management involved in making day-today decisions
What is management accounting?
400
A person who transforms ideas for products or services into real-world businesses.
What is an entrepreneur?
400
Business organization that must get permission from the state to operate
What is a corporation?
400
Comparison of reports is why this accounting assumption is necessary
What is accounting period?
400
Designed to collect, document, and report on financial transactions affecting the business
What is an accounting system?
400
All accountants are to use the same set of rules called this to prepare their reports
What is GAAP (general accepted accounting principles)?