Accounting Chapter Two Vocab

Terms in this set (19)

accounting period
A period of time covered by an accounting report
accounting system
A planned process for providing financial information that will be useful to management
business entity
financial information is recorded and reported separately from the owner's personal financial information
charter
A document that gives the holder the right to organize settlements in an area
computerized accounting system
the financial information is recorded by entering it into a computer
corporation
A business owned by stockholders who share in its profits but are not personally responsible for its debts
Entrepreneurship
Accepting the risk of starting and running a business.
financial accounting
accounting information and analyses prepared for people outside the organization
financial reports
summarized information about the financial status of a business
free enterprise system
an economic system characterized by private or corporate ownership of capital goods
GAAP
Generally Accepted Accounting Principles
going concern
financial statements are prepared with the expectation that a business will remain in operation indefinitely
management accounting
the area of accounting concerned with preparing data for use by managers within the organization
manual accounting system
A type of accounting system in which information is processed by hand.
manufacturing business
a business that makes finished goods from raw materials by hand or machinery
merchandising business
A business that purchases and sells goods
partnership
A business in which two or more persons combine their assets and skills
service business
carries out activities that are consumed by its customers
sole proprietorship
a business owned and managed by a single individual
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