Accounting 100-Chapter 1 The Nature of Accounting

  1. Accounting
    • the process
    • of recording, summarizing,
    • analyzing, and
    • interpreting financial
    • (money-related) activities
    • to permit individuals and
    • organizations to make
    • informed judgments and
    • decisions
  2. Business
    an organization that operates with the objective of earning a profit
  3. Sole Proprietorship
    A sole proprietorship is a business owned by one person.
  4. Parnership
    • A partnership is a form of business that
    • is co-owned by two or more persons
  5. Corporation
    • A corporation is a form of business that
    • is owned by investors called stockholders
  6. Limited Liability Company (LLC)
    type of business organization that combines features of a corporation and those of a partnership or sole proprietorship
  7. Service Business
    A service business performs services for customers to earn a profit.
  8. Merchandising business
    • A merchandising business purchases goods produced by others and then
    • sells these goods to customers
  9. Manufacturing Business
    A manufacturing business produces a product to sell to its customers.
  10. Asset
    An asset is an item with money value that is owned by a business.
Card Set
Accounting 100-Chapter 1 The Nature of Accounting
The Nature of Accounting