A system in which people are free to produce the goods and services they choose.
What is free enterprise system?
100
Provides a needed service for a fee.
What is service business?
100
Business organization that is recognized by law to have a life of its own.
What is corporation?
100
A set of rules used by accountants to prepare financial reports.
What is GAAP?
100
A period of time covered by an accounting report.
What is accounting period?
200
The amount of revenue earned above the expenses incurred to operate the business.
What is profit?
200
A business that buys goods (for example, books or clothing) and sells those goods for a profit.
What is merchandising business?
200
A legal written permission that gives a corporation certain rights and privileges and spells out the rules under which the corporation is to operate.
What is charter?
200
Summarized information about the financial status of a business.
What are financial reports?
200
The assumption that a business entity will continue to operate for an indefinite time.
What is going concern?
300
The result of a company's spending more than it receives in revenue.
What is loss?
300
A business that transforms raw materials into finished products through the use of labor and machinery.
What is manufacturing business?
300
A systematic process of recording and reporting the financial information resulting from business transactions.
What is accounting system?
300
Reporting information to external users (individuals not directly involved in the day-to-day operations of the business.
What is financial accounting?
300
All types of businesses sell a product.
What is false?
400
A person who transforms ideas for products or services into real-world businesses.
What is entrepreneur?
400
A business owned by one person.
What is sole proprietorship?
400
A system in which accounting information is recorded and processed by hand.
What is manual accounting system?
400
Reporting information to management, often referred to as accounting for internal users of accounting information.
What is management accounting?
400
Basic accounting rules and procedures differ from business to business.
What is false?
500
Money supplied by investors, banks, or owners of a business. Refers to the dollar value of assets contributed to the business.
What is capital?
500
Business owned by tow or more persons, called partners, who agree to operate the business as co-owners.
What is partnership?
500
A system in which financial information is recorded by entering it into a computer.
What is computerized accounting system?
500
Exist 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?
500
In a free enterprise system, businesses compete for customers.