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Accounting Ch.2

Horizontales
A business that buys finished goods & resells them to individuals or other businesses.
The accounting assumption in GAAP that a business exists independently of its owners personal holdings. The accounting records and reports are maintained separately and contain financial information only to the business.
Documents that present summarized information about the financial status of a business.
A system designed to collect, document, and report on business transactions.
A business organization recognized by law to have a life of its own.
The type of accounting that focuses on reporting information to management; often referred to as accounting for internal users of accounting information.
Generally Accepted Accounted Principles. Consists of: business entity, accounting period, & going concern.
A business owned by one person.
A system in which individuals are free to produce the goods & services they choose.
The accounting assumption GAAP that a business is expected to survive and operate indefinitely.
Money supplied by investors, banks, or owners of a business.
A business owned by two or more people, called partners, who agree to operate the business as co-owners.
Verticales
A business that buys raw materials, transforms them into finished products by using labor & machinery, & sells the finished products to individuals or other businesses.
The type of accounting that focuses on reporting information to external users.
The period of time covered by an accounting report.
The legal permission, granted by a state, that gives a corporation certain rights and privileges and spells out the rules under which the corporation is to operate.
A business that provides a needed service for a fee.
The amount earned above the amount expense incurred to keep the business operating.