Types of Businesses
a company owned by a group of people authorized to act as a single entity
What is a corporation?
a record of a single item in the accounting equation
What is an account?
anything of value that is owned
What is an asset?
the act of taking assets for personal use by a business owner
What is a withdrawal?
a business owned by one person
What is a sole proprietorship?
the total amount in an account after a transaction has been recorded
What is an account balance?
financial rights to the assets of a business
What is equity?
business activity that affects assets, liabilities, or owner’s equity
What is a transaction?
a business that buys goods to use as materials for making new products
What is a manufacturing business?
the process of keeping and analyzing financial data
What is accounting?
a cost required to operate a business
What is an expense?
income a business receives from sales
What is revenue?
a business that purchases and sells goods
What is a merchandising business?
a summary of a business’s financial transactions
What are accounting records?
anything owed by a business
What is a liability?
a financial document that reports account balances on a given date
What is a balance sheet?
a business that performs a service for a fee
What is a service business?
a plan for providing financial information
What is an accounting system?
the portion of a business belonging to the owner
What is owner's equity?
a business owned by two or more people
What is a partnership?