Accounting 1
the art of the recording and reporting financial transactions.
What is Accounting
The amount of money earned over and above the amount spent (expenses) to keep the business operating.
What is a Profit
When a business spends more money than it earns.
What is a loss
A person who transforms ideas for products or services into real-world businesses.
What is a Entrepreneur
•An entry-level job that can vary from specializing in one part of the system (i.e. Purchasing or Accounts Payable) to doing a wide range of tasks
What is Accounting Clerk
A series of events that are regularly repeated in the same order.
What is Cycle
A business that operates to earn a profit for its owners.
For Profit Business:
An organization that operated for purposes other than making a profit.
What is a Not for Profit:
A business that provides a needed service for a fee.
What is a service Business
•A person who handles a broad range of responsibilities, makes business decisions, and prepares and interprets financial reports
What is an Accountant
This line on the balance sheet refers to money owed by a company
What is Accounts Payable?
The amount it cost to buy the product needed to sell.
What is COGS
A business that buys raw materials, uses labor and machinery to transform them into finished products, and sells the finished products to individuals or other businesses.
A business recognized by law to have a life of its own.
What is a Corporation
•A licensed professional who has met certain education and experience requirements and passed a national test
What is a CPA
A business that buys finished products and resells them to individuals or other businesses.
What is Merchandising Business
The money made after the investment
What is ROI
a merchandising business that operates online
What is e-commerce
A business owned by one person.
What is a Sole Proprietorship
goods and materials that a business holds for the ultimate goal of resale, production or utilization. Inventory management is a discipline primarily about specifying the shape and placement of stocked goods.
What is Inventory?
An accounting period of 12 consecutive months which CAN match the calendar year or not. Ex/ The State of North Carolina’s fiscal year begins on July 1 and ends the following June 30
What is Fiscal Year
A system in which individuals can produce the goods and services they choose.
What is Free enterprise
The accounting assumption that a business exists independently of its owner’s personal holdings. The accounting records and reports are maintained separately and contain financial information related only to the business.
What is Business Entity
The legal permission, granted by a state, that gives a corporation certain rights and privileges and spells out the rules under which the corporation is to operate.
What is Charter