Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

17 Cards in this Set

  • Front
  • Back
What are the three types of businesses operated for profit?
What are the two basic business strategies a business can use?
Low Cost
What is a business's "Value Chain"?
It is the way a business adds value for its customer by processing inputs into a product or service.
Business stakeholders would be interested in what?
Business strategy
Value Chain
Business stakeholders include what four categories?
* capital market stakeholders
* product or service market stakeholders
* government stakeholders
* internal stakeholders
What are the three business strategies?
Financing activities involve?
Obtaining funds to begin and operate a business.
Investing activities involve?
Obtaining the necessary resources to start and operate the business.
Operating activities involve?
Using the business's resources according to its strategy.
Define ACCOUNTING, and explain its role in business.
Accounting is an information system that provides reports to stakeholders about the economic acivities and condition of a business. Accounting is the language of business.
What are the principal financial statements of a corporation?
Income statement
Retianed Earnings statement
Balance Sheet
statement of Cash Flows
What does the Income statement report?
A summary or the revenue and the expenses for a specific period of time, such as a month or a year. (Reports a change in financial conditions)
Describe eight basic accounting concepts underlying financial reporting.
Business entity, cost, going concern, matching, objectivity, unit of measure, adequate disclosure, and accounting period concepts.
What is Horizontal analysis?
It compares each item on the most recent financial statement with the related item on one or more earlier statements.
Retained Earnings statement
A summary of the changes in the earnings retained in the corporation for a specific period of time, such as a month or a year. (Reports a change in financial conditions)
Balance Sheet
A list of the Assets, Liabilities, and Stockholders' Equity as of a specific date, usually at the close of the last day of a month or a year. (reports financial condition)
Statement of Cash Flows
A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year. (Reports a change in financial conditions)