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17 Cards in this Set
- Front
- Back
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What are the three types of businesses operated for profit?
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Manufacturing
Merchandising Service |
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What are the two basic business strategies a business can use?
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Low Cost
Differentiation |
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What is a business's "Value Chain"?
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It is the way a business adds value for its customer by processing inputs into a product or service.
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Business stakeholders would be interested in what?
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Business strategy
Value Chain |
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Business stakeholders include what four categories?
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* capital market stakeholders
* product or service market stakeholders * government stakeholders * internal stakeholders |
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What are the three business strategies?
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Financing
Investing Operating |
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Financing activities involve?
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Obtaining funds to begin and operate a business.
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Investing activities involve?
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Obtaining the necessary resources to start and operate the business.
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Operating activities involve?
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Using the business's resources according to its strategy.
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Define ACCOUNTING, and explain its role in business.
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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.
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What are the principal financial statements of a corporation?
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Income statement
Retianed Earnings statement Balance Sheet statement of Cash Flows |
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What does the Income statement report?
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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)
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Describe eight basic accounting concepts underlying financial reporting.
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Business entity, cost, going concern, matching, objectivity, unit of measure, adequate disclosure, and accounting period concepts.
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What is Horizontal analysis?
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It compares each item on the most recent financial statement with the related item on one or more earlier statements.
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Retained Earnings statement
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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)
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Balance Sheet
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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)
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Statement of Cash Flows
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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)
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