Beginning Accounting

What are for-profit businesses

• Operate for reasons other than making a profit

• Make a lot of money

• Operate to make money

• Don't make a lot of money

What does CPA stand for?

• Certified Professional Accountant

• Certified Public Accountant

• Credited Public Accountant

• Certified Proficient Accounting

What is an audit?

• When the company gets in trouble with government

• When the company checks its revenue streams

• A review of the company's accounting systems

• When the company operates at a loss

What is a free enterprise system?

• When people are free to operate the businesses they choose to

• When the government tells you what you can sell

• When society decides what you can and can't sell

What does profit mean?

• The amount of money the business brings in

• The amount of money left over after operating expenses are paid

• How much money the owner makes

• Money made from company sales

What does operating at a loss mean?

• Profits are low

• No one knows what they're doing

• The company spends more money than they make

What is capital?

• The largest city in a state

• Washington D.C

• Money investors, owners, or banks supply

• The cash a company has on hand

What is a service business?

• Provides a needed service for a fee

• Buys finished products and resells them to individuals or other businesses

• Buys raw materials, uses labor and machinery to transform them into finished products

What is a merchandising business?

• Provides a needed service for a fee

• Buys finished products and resells them to individuals or other businesses

• Buys raw materials, uses labor and machinery to transform them into finished products

What is a manufacturing business?

• Provides a needed service for a fee

• Buys finished products and resells them to individuals or other businesses

• Buys raw materials, uses labor and machinery to transform them into finished products