← Chapter 2 Test
5 Written Questions
5 Matching Questions
- Manufacturing business
- business entity
- Free enterprise system
- a Buys raw materials, uses labor and machinery to transform them into finished products, and sells the finished products to individuals or other businesses.
- b People are free to produce the goods and the services they choose.
- c A business recognised by law to have a life of its own.
- d Exists independently of its owner's personal holdings
- e the amount of money earned over and above the amount spent to keep the business operating
5 Multiple Choice Questions
- Generally Accepted Accouting Principles
- Person who transfroms ideas for products of services into real-world businesses.
- Provides a needed service for a fee.
- The financial infromation is recorded by entering it into a computerl.
- Focuses on reporting information to external users.
5 True/False Questions
Management accounting → Focuses on reporting information to external users.
Partnership → a business owned by two or more people.
Charter → Gives a corporation certain rights and privileges
Accounting period → Designed to collect, document, and report on financial transactoins affecting the business
Sole proprietorship → A business owned by one person.