BUS 241 - Exam #1 Study Guide
questions with complete solutions
revenue
A business earns money by selling goods or services to its customers. This amount is called
profit
the difference between the amounts received from customers for goods or services and the
amounts paid for the inputs used to provide the goods or services.
Managerial accounting or management accounting
provides timely information to internal users such as managers and employees to meet their
decision-making needs.
Financial Accounting
provides relevant and timely information for the decision-making needs of users outside of the
business, such as, investors, creditors, customers, and the government.
Managerial accounting is primarily for
internal stakeholders
, financial accounting is primarily for
external stakeholders.
The different types of businesses
service, merchandising, manufacturing
Accounting equation
A = L+E
Guidelines for ethical behavior.
Moral values, such as respect, honesty, fairness, and responsibility, guide how we ought to
behave. Ethical principles explain how to apply moral values to behavior.
sole proprietorship
A business owned by one person
partnership
A business in which two or more persons combine their assets and skills
questions with complete solutions
revenue
A business earns money by selling goods or services to its customers. This amount is called
profit
the difference between the amounts received from customers for goods or services and the
amounts paid for the inputs used to provide the goods or services.
Managerial accounting or management accounting
provides timely information to internal users such as managers and employees to meet their
decision-making needs.
Financial Accounting
provides relevant and timely information for the decision-making needs of users outside of the
business, such as, investors, creditors, customers, and the government.
Managerial accounting is primarily for
internal stakeholders
, financial accounting is primarily for
external stakeholders.
The different types of businesses
service, merchandising, manufacturing
Accounting equation
A = L+E
Guidelines for ethical behavior.
Moral values, such as respect, honesty, fairness, and responsibility, guide how we ought to
behave. Ethical principles explain how to apply moral values to behavior.
sole proprietorship
A business owned by one person
partnership
A business in which two or more persons combine their assets and skills
