The amount of money earned over and above the amount spent to keep the business operating
What is profit?
100
Three types of business operations
What is are service, merchandising, and manufacturing?
100
A business owned by one person
What is a sole proprietorship?
100
Collection, documentation, and reporting of financial transactions affecting the business
What is an accounting system?
100
Business entity, accounting period, and going concern
What are accounting assumptions?
200
Businesses that spend more money than they earn operate at a ________.
What is loss?
200
Provides a needed service for a fee
What is a service business
200
A business owned by two or more people who operate the business as co-owners
What is a partnership?
200
The set of rules, issued by FASB, used to prepare financial reports
What is GAAP?
200
Assumption that a firm exists independently of its owner's personal holdings
What is business entity?
300
A person who transforms ideas for products and services into real-world businesses
What is an entrepreneur?
300
Buys finished products and resells them to individuals or other businesses
What is a merchandising business?
300
A business recognized by the law to have a life of its own
What is a corporation?
300
Automated accounting
What is computerized accounting?
300
A period of time covered by an accounting report
What is an accounting period?
400
People are free to produce the goods and services they choose in a ____________________.
What is free enterprise system?
400
Buys raw materials, use labor and machinery to transform them into finished products, and sells the finished products to individuals or other businesses
What is a manufacturing business?
400
The legal permission that gives a corporation certain rights and privileges
What is a charter?
400
Focuses on reporting accounting information to external users - like investors, stockholders, and consumers.
What is financial accounting?
400
Assumption that a business has the ability to survive and operate indefinitely
What is going concern?
500
Money that investors, banks, or business owners supply
What is capital?
500
A bakery is a _______________ form of business.
What is manufacturing?
500
A disadvantage limited to corporations
What is higher taxes, more start up costs, more complex, or more regulations
500
Focuses on reporting accounting information to internal users - such as managers