Accounting Vocabulary

People are free to produce or purchase the goods and services that they choose

• Free Enterprise System

• Demand Economy

• Entrepreneurship

• Corporation

The amount of money earned over and above the amount spent to keep the business operating?

• Capital

• Profit

• Asset

• Loss

Entrepreneur

• Person purchasing products

• Person who transforms ideas for products or services into real word businesses

• Person who obtains education in acounting

• Person that purchases raw materials

Spending more money than you earn

• Loss

• Liability

• Profit

• Expenditure

Business that buys finished products and resells them

• Service Business

• Manufacturing Business

• Sole Proprietorship

• Merchandising Business

Service Business

• Airport

• Walmart

• Hair Stylist

• Hobby Lobby

Buys raw materials and transforms into a finished product

• Conglomerate

• Service Business

• Manufacturing Business

• Tradesman

Business is owned by one person

• Corporation

• Charter

• Partnership

• Sole Proprietorship

Business that is recognized separate from personal finances

• Sole Proprietorship

• Corporation

• Charter

• Partnership

Partnership

• Business that purchases raw materials

• Owned by two or more people

• Easy to set up

• Has unlimited resources