Chapter 2 Assignment-Accounting
Accounting Period - correct answer-Period of time covered by an Accounting report
Business Entity - correct answer-The accounting assumption that a business exists
independently of its owner's personal belongings.
Capital - correct answer-Money supplied by investors or business owners.
Charter - correct answer-The legal permissions that give a business certain rights and
privileges which is granted by the state.
Corporation - correct answer-Business granted by law to have a free life of its own.
Entrepreneur - correct answer-A person who transforms ideas into products.
Financial Accounting - correct answer-Focuses on reporting information to external users.
Financial Reports - correct answer-Documents that present information about a business or
persons finances.
Free enterprise system - correct answer-A system in which individuals are free to produce
goods they wish to produce.
GAAP - correct answer-Set of rules that all accountants use.
Going concern - correct answer-Accounting assumption that a business will run indefinitely.
Loss - correct answer-Result in which a business spends more than earned.
Management Accounting - correct answer-Type of accounting that focuses on reporting
information to management.
Manufacturing Business - correct answer-Business that buys raw material and transforms
them into a financial profit.
Merchandising Business - correct answer-Buys finished goods and resells them to other
businesses.
Partnership - correct answer-A business owned by 2 or more persons.
Profit - correct answer-The amount earned is above the amount spent.
Service - correct answer-Provides a needed service for a fee.
Sole Proprietorship - correct answer-A business owned by 1 person.
Accounting Period - correct answer-Period of time covered by an Accounting report
Business Entity - correct answer-The accounting assumption that a business exists
independently of its owner's personal belongings.
Capital - correct answer-Money supplied by investors or business owners.
Charter - correct answer-The legal permissions that give a business certain rights and
privileges which is granted by the state.
Corporation - correct answer-Business granted by law to have a free life of its own.
Entrepreneur - correct answer-A person who transforms ideas into products.
Financial Accounting - correct answer-Focuses on reporting information to external users.
Financial Reports - correct answer-Documents that present information about a business or
persons finances.
Free enterprise system - correct answer-A system in which individuals are free to produce
goods they wish to produce.
GAAP - correct answer-Set of rules that all accountants use.
Going concern - correct answer-Accounting assumption that a business will run indefinitely.
Loss - correct answer-Result in which a business spends more than earned.
Management Accounting - correct answer-Type of accounting that focuses on reporting
information to management.
Manufacturing Business - correct answer-Business that buys raw material and transforms
them into a financial profit.
Merchandising Business - correct answer-Buys finished goods and resells them to other
businesses.
Partnership - correct answer-A business owned by 2 or more persons.
Profit - correct answer-The amount earned is above the amount spent.
Service - correct answer-Provides a needed service for a fee.
Sole Proprietorship - correct answer-A business owned by 1 person.
