Forms of Business
a business run by 1 owner
What is Sole Proprietorship?
a business where products are made from raw materials
money and necessities needed to start and maintain a business
What is capital?
the assumption that an owner's business money has been kept separate from their personal money
What is Business Entity?
these are prepared at the end of the accounting period
What are reports?
a business owned by 2 or more people
What is a partnership?
a business where finished products are bought and sold to the consumer
What is a merchandising business?
an accounting system completed by hand
What is manual accounting?
the assumption that the accounting cycle is recorded most commonly over a 1 year time span
What is the Accounting Period?
this type of accounting prepares reports for outside people such as investors and banks
What is financial accounting?
a business with multiple shareholders who own stock in the business
What is a corporation?
a business that provides a need or a service for a fee
What is a service business?
an accounting system completed electronically
What is computerized accounting?
the assumption that the business will survive and operate indefinitely
What is Going Concern?
this type of accounting prepares reports for inside people such as managers, the CEO, and workers
a legal document necessary for starting a corporation
What is a charter?
the end result when expenses exceed revenue in a business
What is a loss?
a set of rules for all accountants to follow
What is GAAP?
Generally Accepted Accounting Principles
2 examples of source documents that show a transaction has taken place in the business
What are checks, invoices, sales slips, receipts, or memos?
a system where you have the right to produce and sell anything you want, as long as it is legal
the end result when revenue exceeds expenses in a business
What is profit?
a period of time where accountants will complete tasks and create financial reports for a cycle, sometimes lasting 1-3 months but most commonly lasting 1 year.
What is accounting period?
most new businesses will fail within the first ____ years, although an accountant will work with the mindset that it will survive forever
What is 5?
the 3 tasks the accountant completes during an accounting period