AF Ch 2 Assessment

Business owned by two or more persons. Usually formed when a business needs more capital than one person can invest. They also enter a written legal agreement

• Partnership

• Corporation

• Profit

• Sole Proprietorship

The financial information is recorded by entering it into a computer. Aka automated accounting system

• Management Information System

• Free Enterprise System

• Computerized Accounting System

• Financial Accounting

A business owned by one person and is the oldest and most common form of business

• Sole Proprietorship

• Entrepreneur

• Corporation

• Partnership

Summarized information about the financial status of a business

• Management Accounting

• Gaap

• Financial Reports

• Financial Accounting

Money that investors, banks, or business owners supply to cover supplies such as buying or making products, cover operations costs like rent, utilities and wages

• Corporation

• Collateral

• Profit

• Capital

Legal permission that Gives a corporation certain rights and privileges

• Corporation

• Profit

• Partnership

• Charter

A business recognized by law to have a life of its own. Gets permission from the state to operate. Raises money by selling stocks.

• Partnership

• Corporation

• Sole Proprietorship

• Service Business

designed to collect, document, and report on financial transactions affecting business

• Accounting System

• Financial Accounting

• Financial Reports

• Accounting Period

Exists independently of its owner's personal holdings ex: personal money is separated from business earnings

• Business Entity

• Service Business

• Financial Reports

• Management Accounting

Businesses that spend more money than they earn

• Profit

• Risk

• Capital

• Loss