test 2 Flashcards
(30 cards)
financial accounting reports
reporting financial info to external users
manufacturing
a business that buys raw materials and transforms them into products
business entity
business that exists independently of its owner’s personal holdings
balance sheet (statement of financial position)
report of balances in all asset, liability, and owner’s equity
accounting period
period of time covered by accounting report
going concern
assumption that a business entity will continue to operate for indefinite time
liabilities, debts
amount owed to creditors
shareholders
people who invest money in shares
merchandising
business that buys goods and sells for profit
sole proprietorship
business owned by one person
charter
legal written permission that gives a corporation certain rights and priveleges
annual report
example of financial report produced by accounting department of a company
working capital
money that a business uses for everday expenses or has available for spending
earning
profit
service business
business that provides service for a fee
capital
money supplied by investors , banks, owners of businesses
income statement, statement of income
report showing net income or loss for a period
dividend
part of profit that a company pays to shareholders
corporation
business organisation that is recognized by law to have a life of its own
expenses
cost of goods and services that are used to operate a system
accounting system
systemic process of recording and reporting the financial info. resulting from business transactions
management accounting reports
reporting info to management, reports for internal users
partnership
business by two or more persons who agree to operate the business as co owners
bonds
loans that pay interest and are repaid at a fixed future date
