Accounting I Intro Quiz

Business that produces items to sell to individuals and other businesses.

The ___ is the period of time covered by an accounting report.

A partnership can be owned by more than two individuals.

All types of businesses sell a product.

A business owner must always get permission to operate from the state government.

The accountant prepares reports as though the business will operate indefinitely.

An example of an internal user of accounting information is

Selling price covers the cost of raw materials needed to make the product-- you make a profit?

GAAP communicates financial information to people who need to understand financial forms.

Business owners must keep financial records of the business separate from the personal records.

____summarize information about the financial status of a business.

Basic accounting rules and procedures differ from business to business.

In a free enterprise system, businesses compete for customers.

Rules accountants follow when recording accounting information.

Only businesses that earn a profit will have the economic resources to continue to operate.

Money invested in a business by its owners or the money provided by banks or investors.

All businesses set up their accounting systems in the same manner.

If a business spends more to operate than it earns from sales it is operating at a

A corporation is the easiest to organize.

Is concerned with preparing reports for internal users.

Corporations often start out as sole proprietorships or partnerships.

A business is operating at a ____if it earns more money than it spends.

Business that must get permission from the state to operate.

In accounting, a business is an entity separate from its owners.

Advantage of entrepreneurship--any financial gain from operating the business is yours.

Designed to collect, document, and report on the financial transactions affecting the business.

An individual who transforms ideas for products or services into real world businesses.

The most common form of business organization is the

Service businesses are not intended to operate at a profit.

Legal document giving a business the right to operate as a corporation.