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34 Cards in this Set
- Front
- Back
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Has one owner
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sole proprietorship
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Time period covered by an accounting report
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accounting period
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Money invested in a business by an owner
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capital
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money earned over and above the amount of money needed to keep a business operating
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profit
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Businesses that spend more money than they receive operate at a __________
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loss
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something designed to collect,document,and report on financial transactions affecting a business
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accounting system
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Transforms ideas for products or services into a business.
Motivated self-starters willing to take risks. |
Entrepeneur
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Accounting for external users of accounting information
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financial accounting
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acronym for Generally Accepted Accounting Procedures
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GAAP
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Accounting for internal users of accounting information
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managerial accounting
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Accounting for internal users ofaccounting information
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managerial accounting
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exists independently of its owner's personal holdings
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business entity
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a business expected to operate into the future
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A going concern
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Type of business that buys finished products and then sells them
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merchandising business
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Type of business that transforms raw materials into products.
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manufacturing business
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A business organization that has a life of its own and is recognized by law
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corporation
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Type of business that provides professional services for a fee
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service business
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Summarized information about the financial status of a business
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financial reports
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Financial information recorded by entering it into a computer
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computerized accounting system
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Accounting information processed by hand
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manual accounting system
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Legal permission obtained from a state for a corporation to operate as a business. It spells out the rules the corporation must abide by.
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charter
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System in which people are free to produce goods and services they choose, and use their money in a manner they choose
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free enterprise system
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Name 3 types of businesses
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Service
Manufacturing Merchandising |
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Name 3 forms of businesses
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sole proprietorship
partnership corporation |
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What is the Free enterprize System based on?
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Individual freedoms
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What is a key element of the free enterprize system?
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competition among businesses
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In order for a business to continue to operate, what do they have to do?
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Make a profit
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What type of a business operator is willing to take risks and make things happen?
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Entrepeneur
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What are some traits of an entrepeneur?
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strong desire to succeed, ability to solve problems
creative ideas |
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business owned by stockholders
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corporation
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business owned by one person
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sole proprietorship
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business owned by 2 or more people
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partnership
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What are three important accounting assumptions?
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Business entity
going concern accounting period |
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Why would an individual use a financial accounting report?
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To decide whether or not invest in a company
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