Accounting terms
Using Reports for making Business Decisions
Types and forms of businesses
Accounting assumptions
The Accounting System
100
Money invested in a business by the owner
What is capital
100
This type of accounting focuses on reporting information to external users
What is Financial accounting?
100
Business organization that must get permission from the state to operate
What is a corporation?
100
Accounting reports are prepared for a specific period of time
What is time period?
100
These are summarized information about a business
What is a financial report?
200
Amount of money earned over and above the amount spent to keep the business operating
What is profit?
200
This type of accounting focuses on reporting information to management involved in making day-to-day decisions
What is Management accounting?
200
Business that provides a service for a fee
What is a service business?
200
Assumption that the business will continue to operate in the future
What is Going Concern?
200
Where financial information is recorded by entering it into a computer
What is Computerized Accounting?
300
When a business has more operating costs than earnings
What is a loss?
300
This would be an example of who would use financial accounting reports
What is investors, banks/loan institutions/ government agencies, workers, consumers, union leaders, competitors
300
Business with a single owner
What is a sole proprietorship?
300
Effects of business transactions are measured in money amounts
What is Unit of Measure?
300
This is where accounting information is processed by hand
What is Manual Accounting?
400
System of measuring, recording, and reporting the financial activities of a business
What is an accounting system?
400
These risk-takers transform ideas for products or services into real world business
What is an Entrenpreneur?
400
Business produces items from raw materials to sell to individual and other businesses
What is a manufacturing business?
400
Organization exists independently of its owner's personal holdings
What is Business Entity?
400
All accountants are to use the same set of rules called this to prepare their reports
What is GAAP (generally accepted accounting principles)
M
e
n
u