1.01 & 1.02 Quiz Review

Which term refers to the owner having full responsibility for company debts and obligations?
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Terms in this set (10)
Which term refers to the owner having full responsibility for company debts and obligations?
unlimited liability
Which type of business buys raw materials and transforms them intofinished products?
manufacturing
The standards, conventions, and rules that accountants follow to preparefinancial reports are known as:
generally accepted accounting principles
The accounting assumption that a business is expected to survive andoperate indefinitely is called a:
going concern
In which type of business ownership structure does each owner in thegroup risk losing his/her personal property even though responsibilitiesare shared?
partnership
In which type of business are operations and production usuallyunaffected when ownership is transferred?
corporation
Which career involves providing financial advice to help individuals andbusiness organizations, and requires education and experience as well aspassing a uniform exam?
certified public accountant
Which type of accounting focuses on reporting information to executivesand internal users of information who are involved in making day-to-dayoperating decisions such as purchasing and hiring?
management
Which term refers to the accounting assumption that a business existsindependently of its owner's personal property and requires separatefinancial record keeping of the owner's finances and those of thebusiness?
business entity
What is the term for a financial reporting period of time beginning onJanuary 1 and ending on December 31?
calendar year