Vocabulary
Business owned by two or more persons, who agree to operate the business as co-owners.
What is partnership?
The result of a company's spending more than it receives in revenue.
What is loss?
Money supplied by investors, banks, or owners of a business. Refers to the dollar value of assets contributed to the business.
What is capital?
Exists 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?
A set of unique qualities that make us different from all other people.
What is personality?
Summarizes information about the financial status of a business.
What are financial reports?
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?
A systematic process of recording and reporting the financial information resulting from business transactions.
What is accounting system?
A business that transforms raw materials into finished products through the use of labor and machinery.
What is manufacturing business?
The way you use your time, energy, and resources.
What is lifestyle?
A set of rules used by accountants to prepare financial reports.
What is generally accepted accounting principles (GAAP)?
A person who transforms ideas for products or services into real-world businesses.
What is entrepreneur?
A business owned by one person.
What is sole proprietorship?
Business organization that is recognized by law to have a life of its own.
What is corporation?
Business that operates to earn money for its owners.
What is for-profit-business?
The amount of revenue earned above the expenses incurred to operate the business.
What is profit?
A period of time covered by an accounting report.
What is accounting period?
Reporting information to external users (individuals not directly involved in the day-to-day operations of the business.
What is financial accounting?
A system in which people are free to produce the goods and services they choose.
What is free enterprise system?
Making contacts with people to share information and advice.
What is networking?
The assumption that a business entity will continue to operate for an indefinite time.
What is going concern?
A business that buys goods and then sells those goods for a profit.
What is merchandising business?
Provides a needed service for a fee.
What is service business?
Reporting information to management, often referred to as accounting for internal users of accounting information.
What is management accounting?
Activities you perform well.
What are skills?