Chapter 1 Flashcards
Going into business means investing in activities that can make available goods and services needed in a community.
Concept of business
Realize profit from investment , increase the value of the business itself as an economic entity , and improve the quality of life in the community.
Concept of business
Its growth and stability enhances says also the economic conditions of the business where it is located
Concept of business
Definition of business
Commercial activity customarily engage as means of livelihood.
An organization involves rendering services and selling goods to satisfy the needs of customer.
Place where enterprise is carried on.
Location where a transaction occur between the seller and the buyer.
Goals of engage in into business
Earn profit out of investment
Improve the quality of life
Increase its own value as an economic entity
Forms of business
Sole proprietorship
Partnership
Corporation
Cooperative
Owned by one person and operates for their benefit
Sole proprietorship
Has an unlimited liability for all obligations incurred whether from operating or judgment in the business
Sole proprietorship
Generates own financial resources
Sole proprietorship
Owned by two or more people
Partnership
Each has unlimited liability for the debts incurred by the business
Partnership
Owner of a corporation
Shareholders
Has limited liability and the business has a separate legal personality from its owner
Corporation
A limited liability business that can organize for nonprofit and for-profit.
Cooperative
This has members that they share decision-making authority
Cooperative
Types of business Organization
Servicing
Merchandising
Manufacturing
Companies that performs services for a fee
Servicing
Organization that generally purchases finish products or goods that are ready for sale to final customer
Merchandising
This entity normally buy raw materials , processed them into products and once finish as products , this will be available for sale
Manufacturing
Activities of business organization
Financing activities
Investing activities
Operating activities
Activities of an organization use to obtain financial resources from financial markets. This is the means of funding of the business to be engage in
Financing activities
Involves selection in physical resources that will be used to develop , produce goods and services such as buying of land , acquisition of necessary equipment and construction of building.
Investing activities
The most activities that can found in business that involves the use of resources to design , produce and distribute goods and services to the customer that may include research and development activity , designing and engineering
Operating activities
An economic activities that affect any of the basic accounting elements
Business Transaction
Includes transfer of something of value between two entities
Business transaction
Documents on paper or electric documents that represent in relation to external parties , such as letters , invoice , order sheets , credit notes and bills
Business documents
This is what you call to the business documents that relate to sales of goods and services
Sales document
It describes all the basic facts of the transaction such as the amount of transaction , to which the transaction was made , the purpose of the transaction , and the date of the transaction
Source document
It is used as the basis to analyze and record transactions
Record of business
An alternative and legally acceptable instrument used to buy groceries , pay bills , and purchase product. This is usually used to pay big amount of money
Check
Itemized statement of the goods or services provided by a vendor or supplier. Indicates the quantity and price of each product or service provided
Purchase invoice
Roll a paper which is used in cash register to print information when completing transaction
Cash register tape
A commercial document issued by a seller to a buyer
Reddit memo for customer refund
Used to record the x and employee is working punches in and out to mark the time they start and stop work
Employee time card
A paper slips that banks use with customers for the purpose of depositing funds into their account
Validated deposit slip
Report released on a fixed date every month by banks that list deposits, withdrawals, and check fades incurred on account.
Bank statements
It sets forth the descriptions , quantities , prices , discounts , payment terms , date of performance, and identifies also as “order”
Purchase order
A written or spoken agreement , specially one concerning employment , sales , or tenancy that is intended to be enforceable by law
Contracts
It is also called a statement of account
Billing statement
It is a list of charges that customer has accumulated over a period of time. it is a document issued by a supplier to its customer
Billing statement
It is a written acknowledgement that shows money which has been received as an exchange for product and services
Official receipt
A simply physical proof that the item has been delivered
Delivery receipt
An itemized statement of goods or services provided to customer which indicates the quantity and price of each products delivered
Sales invoice
Summary of the total manufacturing cost of an item that involves charges to a processing department and the allocation of the total cost between the ending work in progress inventory and the units completed and transferred out to the next department or finished goods inventory
Production report
A signed document containing a written promise to pay a stated sum to a specified person or the barrier at the specified date or on-demand
Promissory notes
