Chapter 1: Introduction to Accounting Flashcards
what is a trading business?
a trading business buys from suppliers and sells goods to its customers
what is a service business?
a business that provides services to its customers
what are the three forms of business ownerships?
sole proprietorship (SP)
limited liability partnership (LLP)
private limited company (PLC)
what are shares?
(fyi)
shares are units of business ownership
what are collaterals?
Assets that lenders can sell to get their money back if the borrower does not repay the loan
what are stakeholders?
Groups of people who will make use of information about the business to make decisions
They rely on both accounting information and non-accounting information that are not shown on financial statements for decision making
Name the 5 internal stakeholders
- owners and shareholders
- managers
- employees
- lenders
- suppliers
name the 3 external stakeholders
- customers
- government
- competitors
