Chapter 2 Accounting Word Scramble
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| Term | Definition |
| free enterprise system | A system in which individuals are free to produce the goods and services they choose. |
| profit | The amount earned above the amount of expense incurred to keep business operating. |
| loss | The result when a business spends more money than it earns. |
| entrepreneur | A person who transforms ideas for products or service into real-world business. |
| capital | Money supplied by investors, banks, or owners of a business. |
| service business | A business that provides a needed service for a fee. |
| merchandising business | A business that buys finished goods and resells them to individuals or other businesses. |
| manufacturing business | A business that buys raw materials and transforms then into finished products by using labor and machinery. |
| sole proprietorship | A business owned by one person. |
| partnership | A business owned by 2 or more persons called partners, who agree to operate the business as co-owners. |
| corporation | A business organization recognized by law to have a life of its own. |
| charter | The legal permission, granted by a state, that gives corporation certain rights and privileges and spells out the rules under which the corporation is to operate. |
| accounting system | A system designed to collect, document, and report on business transactions. |
| manual accounting system | A type of accounting system in which information is processed by hand. |
| computerized accounting system | A type of accounting system in which information is recorded by entering it into a computer. |
| GAAP | (generally accepted accounting principles) The set out rules that all accountants use to prepare financial reports. |
| financial reports | Documents that present summarized information about the financial status of a business. |
| financial accounting | The type of accounting that focuses on reporting information to external users |
| management accounting | The type of accounting that focuses on reporting information to management; often referred to as accounting for internal users of accounting information. |
| business entity | The accounting assumption that a business exists independently of its owners personal holdings. The accounting records and reports are maintained separately and contain financial information related only to business. |
| accounting period | The period of time covered by an accounting report. |
| going concern | The accounting assumption that a business is expected to operate indefinitely. |
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Janna.Curtis
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