Free enterprise system
People are free to produce the goods and services they choose.
The amount of money earned over and above the amount spent to keep the business operating.
Businesses that spend more money than they earn.
A person who transforms ideas for products or services into real world businesses.
Money that investors, banks, or business owners supply.
Provides a needed service for a fee.
Buys finished products and resells them to individuals or other businesses.
Buys raw materials, uses labor and machinery to transform them into finished products, and sells the finished products to individuals or other businesses.
A business owned by one person.
A business owned by two or more persons who agree to operate the business as co-owners.
A business recognized by law to have a life of its own.
Gives a corporation certain rights and privileges.
Designed to collect, document, and report on financial transactions affecting the business.
Rules that the FASB issues.
Summarized information about the financial status of a business.
Focuses on reporting information to external users.
Focuses on reporting information to management.
Exists independently of its owner's personal holdings.
Period of time covered by an accounting report.
Accountants assume that a business has the ability to survive and operate indefinitely.