Accounting Ch 2

This type of business has a single owner.

American Steel is what type of business?

This type of business is recognized by law to have a life of its own.

This type buys finished products & resells them to individuals or other businesses. 

The framework, or set of rules, accountants follow to prepare financial reports.

In this, people are free to produce the goods and services they choose.

This type of business buys raw materials and transforms them into finished products.

This gives a corporation legal permission to operate.

A person who transforms ideas for products and services into real-world businesses.

The accounting assumption that a business exists independently of its owners personal holdings

This focuses on reporting information to external users.

Summarized information about the financial status of a business.

This focuses on reporting information to management (internal users).

The period of time covered by an accounting report

When a business spends more than it makes it is operating at a _____ .

Money that investors, banks, or business owners supply.

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

Chase Bank is what type of business?

The amount of money earned over and above the amount spent to keep the business operating.

The accounting assumption that a business is expected to survive and operate indefinitely