| A | B |
|---|
| Audit | The review of a company’s accounting systems and financial statements to confirm they follow accounting rules. |
| Going Concern | Assumption states that a business will continue to operate |
| Accounting Period | Assumption that states the period of time covered by an accounting report will be listed. |
| Business Entity | Assumption states that the company exists independently of the owner’s personal holdings. |
| Charter | Gives a company rights and privileges. |
| Sole Proprietorship | When one person owns a business. |
| Profit | The amount of money earned over the amount spent to keep a business operating. |
| Loss | Spending more money then you earned in operating a business. |
| Accounting | The system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results. |
| Service Business | Provides a needed service for a fee. |
| Merchandising Business | Buys finished products and resells them to individuals or other businesses for a fee. |
| Manufacturing Business | Buys raw materials to transform them finished products and then sells them to individuals or other businesses for a fee. |
| Partnership | Business owned by 2 or more persons who agree to operate the business as co-owners. |
| Free Enterprise System | Economic system where people are free to produce the goods and services they choose. |
| Coorporation | A business recognized by law to have a life of its own that must get permission to operate. |
| Financial Reports | Summarized information about the financial status of a business. |
| GAAP | Accounting rules used to communicate financial information. Generally Accepted Accounting Principles |
| Management Accounting | Focuses on reporting information to internal management. |
| Financial Accounting | Focuses on reporting information to external users who are not involved with day to day operations. |
| Entrepreneur | A person who transforms ideas for products or services into real world businesses. |
