Business Structures
A business with more than one owner
Partnership
Refers to the left side of an account
Debit
The process of gathering and preparing financial information about a business or other organization in a form that provides accurate and useful records and enables decisions to be made
Accounting
the period of time covered by the financial statements
Accounting Period
Type of business that provides a service, labor or expertise to customers instead of a physical product
Service business
refers to the right side of an account
Credit
GAAP stands for
Generally accepted accounting principles
set of accounting procedures performed in each accounting period
Accounting Cycle
Items owned by a business that have value
Assets
accounting changes made to ensure all balances are correct
Adjustments
Public corporations must follow GAAP rules. (True/ False)
False
A systematic check of accounting records
Audit
The most common type of organizational structure for larger businesses
Corporation
Financial statement that reports the revenues and expenses for a period of time such as a year or a month
Income statement
The main purpose of accounting
provides financial information for decision making
The time period required to complete the accounting cycle
Fiscal period
Business structure that provides a company flexibility, low startup costs and broad freedom from regulation
Sole proprietorship
A specially ruled book in which accounting entries are recorded in the order in which they occur.
Journal
The equation used to check that assets equal liabilities plus owners equity
Fundamental accounting equation
Recorded in T-charts
Transactions