| A | B |
|---|
| profit | amt of money earned over and above the amt spent to keep the business operating |
| loss | businesses that have more operating costs than earnings operate at a |
| capital | money invested in a business by an owner |
| service business | operates to provide a needed service for a fee |
| merchandising business | buys finished products and resells them to individuals or other businesses |
| manufacturing business | buys raw materials and transforms them into finished products through the use of labor and machinery |
| sole proprietorship | business owned by 1 person |
| partnership | business owned by 2 or more persons |
| corporation | business organization that is recognized by law to have a life of its own |
| charter | legal permission that gives a corporation the right to operate |
| accounting system | process of recording and reporting financial events or transactions |
| business entity | organization that exists independently of its owner's personal holdings |
| going concern | assumption that a business will continue to operate in the future |
| fiscal period | period of time covered by an accounting report |
| accounting clerks | entry-level job that can vary with the size of the company from specialization in one part of the system |
| general bookkeeper | person employed by a small or medium sized business to keep the accounting record |
| accountant | people who make choices and decisions about the design of accounting systems and to preepare and explain financial reports |
| certified public accountant (CPA) | person who provides accounting services to clients for a fee |
| property | anything of value that is owned or controlled |
| property rights | financial claims |
| credit | buy property and agree to pay for it later |
| creditor | person or business to which money is owned or person or business that sells property on credit |
| assets | property or items of value owned by a business |
| equity | financial claims to assets (property) of a business |
| owner's equity | owner's claims to the assets of the business |
| liabilities | creditor's claims to the assets of the business |
| basic accounting equation | relationship between assets and total equities |
| business transaction | economic event that causes a change in assets, liabilities, or owner's equity |
| account | record of the decreases or increases in and the balance for a specific item |
| accounts receivable | total amt of money to be received in the future for goods or services sold on credit |
| accounts payable | amt of money owed, or payable, to a business's creditors |
| capital | dollar amt of the owner's investment in the business |
| on account | buy on credit |
| revenue | income earned from sale of goods and services |
| expense | price paid for goods and services used to operate a business |
| withdrawal | cash or assets taken from business for personal use |
