| A | B |
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| Accountant | A person who handles a broad range of responsibilities, makes business decisions, and prepares and interprets financial reports |
| Accounting Cycle | Activities performed in an accounting period that help the business keep its records in an orderly fashion |
| Accounting Period | fashion Accounting Period The |
| Accounting System | A system designed to collect, document, and report on business transactions |
| Audit | The review of a company’s accounting systems and financial statements to confirm that it follows generally accepted accounting principles |
| CPA | A licensed professional who has met certain education and experience requirements and passed a national test |
| Financial Accounting | Focuses on reporting information to external users—those not directly involved in the day-to-day operations of the business. |
| Calendar Year | Accounting period that begins on January 1 and ends on December 31 |
| Financial Reports | Documents that present summarized information about the financial status of a business. |
| Fiscal Year | An accounting period of 12 consecutive months which CAN match the calendar year or not. |
| Manual Accounting System | A type of accounting system in which information is processed largely by hand recording of transactions. |
| Capital | Money supplied by investors, banks, or owners of a business |
| Corporation | A business organization recognized by law to have a life of its own. |
| Entrepreneur | A person who transforms ideas for products or services into real-world businesses. |
| For-Profit business | A business that operates to earn a profit for its owners. |
| Free Enterprise System | A system in which individuals are free to produce the goods and services they choose. |
| Going Concern | The accounting assumption that a business is expected to survive and operate indefinitely. |
| Loss | The result when a business spends more money than it earns. |
| Manufacturing Business | A business that buys raw materials, transforms them into finished products by using labor and machinery, and sells the finished products to individuals or other businesses. |
| Service Business | A business that provides a needed service for a fee. |
| Profit | The amount of money earned above the amount of expense incurred to keep the business operating. |
| Partnership | A business owned by two or more persons, called partners, who agree to operate the business as co-owners. |
| Non-Profit business | An organization that operated for purposes other than making a profit. |
| Sole Proprietorship | A business owned by one person. |
| Merchandising Business | A business that buys finished goods and resells them to individuals or other businesses. |
