Accounting 1- Ch 2 Vocabulary Part 1

Under the ____ accounting assumption, a business owner must keep the financial records for the business separate from personal records.

• Business entity

• Going Concern

• Personal entity

• Charter

• Entrepreneur

A business that two or more people agree to own together is a(n) ____.

In a(n) ____, people are free to produce the goods and services they choose.

• market system

• free enterprise system

• manufacturing

• merchandising

The ____ is designed to collect, document, and report on the financial transactions affecting the business.

• clerk

• file system

• accounting system

• boss

If a business spends more money to operate than it earns from the sale of goods or services, it is operating at a(n) ____.

____ is concerned with preparing reports for external users such as investors or creditors.

• no one

• managerial accounting

• financial accounting

• everyone

____ are the rules accountants follow when recording and reporting accounting information. ( 4 letter acronym)

A business is operating at a(n) ____ if it earns more money than it spends.

• profit

• loss

• margin

• positive

____ is money invested in a business by its owner(s) or the money provided by banks or investors.

A(n) ____ is an individual who transforms ideas for products or services into real-world businesses.

• banker

• clerk

• employee

• entrepreneur