Ch. 2 Review (Glencoe) Strykowski

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

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

This type of business has a single owner.

Money that investors, banks, or business owners supply.

Advantages: easy to set up, all profits go to owner, owner has total control

Chase Bank is what type of business?

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

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

Disadvantages: Limited expertise, hard to raise money, owner has all risk

Walmart is what type of business?

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

Disadvantages: costs more to start, more complex to organize, more regulations, higher taxes

Alexian Brothers Hospital is what kind of business?

Disadvantages: risk of partner conflict, shared profits, shared risks

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

American Steel is what type of business?

Advantages: easier to raise money, easy to expand, easy to transfer ownership

This type of business is owned by two or more people.

Jewel grocery store is what type of business?

Metal Technologies is what type of business?

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

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

Summarized information about the financial status of a business.

Advantages: easy startup, pooled skills & talents, more money available

This type of business provides a needed service for a fee.

The period of time covered by an accounting report

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

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

This focuses on reporting information to external users.

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