intro to accounting Flashcards
quiz one
A service activity; provides quantitative information
ACCOUNTING
information system that measure, process, and communicates financial information; act of recording classifying, and summarizing manners
ACCOUNTING
provide required capital for the business, cash investment that will be then held in the bank.
INVESTOR
converted into another type of asset that will be then used in the business or sold
ASSET
spent on operating cost such as salaries, supplies, salaries, and utility.
CASH
provides the basis for producing the products and services.
RESOURCES
the sale of product or service generates an asset; this asset once collected will produce a cash inflow for the business
RECEIVABLE
the cash inflow from collections will be use to provide the debt providers with interest on their loans of the company.
DEBT FROM BANK
Selling people’s time; hiring skilled staff; accounting/ barbers/ electricians
SERVICES
Buying and selling products; buying raw materials and making them available for sale; wholesaler/ retailer
TRADER
designing products aggregating components and assembling finished products; raw materials and staff to convert them into a finished products; Vehicle assembly/ food and drinks/ pharmaceutical
MANUFACTURE
growing or extracting raw materials; buying blocks of land and using them to provide raw materials; farming/ mining/ oil
RAW MATERIALS
selling the utilization of infrastructure; buying and operating assets, selling occupancy; transport/ hotels/ sport facilities/ property/ management
INFRASTRUCTURE
receiving deposits, lending, and investing money; using the money to provide loans to borrowers charging them fees and a higher rates of interest than the depositors’ received; bank/ investment house
FINANCIAL
pooling premiums of many to meet claims of few; collecting cash money to pay the losses experience by few; customer/ insurance company
INSURANCE
has single owner called proprietorship who generally is also the manager; absorbs all losses and sole responsibility
SOLE PROPRIETORSHIP
business are operated by two or more persons who contribute money property to common fund; have the intention of dividing the profits among themselves; distinct from personal affairs; each partners are personally reliable for any debt; profits is divided among partners
PARTNERSHIP
business created by operation of law, having rights of succession and the powers, attributes, and properties authorized by law to its existence; stockholders are not personally liable for corporation debts; higher tax; maximum 50 shareholders and less than 15 stockholders
CORPORATION
owner of shares in the company; EQUITY STAKES
SHAREHOLDERS
owns stocks in the company; inventory than equity
STOCKHOLDERS
obtain financial resources from financial markets and how these resources
FINANCING
use capitals from financing activities to acquire other resources used in transform resources
INVESTING
use of resources to design, produce, distribute, and market goods and services
OPERATION
3,000,000 - LESS; 1-9
MICRO
3,000,001 - 15,000,000; 10 - 99
SMALL
15,000,001 - 100,000,000; 100 - 199
MEDIUM
ACCOUNTING is primarily concerned with creating marketing strategies.
FALSE / MARKETING
A corporation can have more than 50 stockholders
FALSE / MAXIMUM
insurance companies POOL PREMIUMS from many to meet the claims of a few
TRUE
PARTNERSHIP is a separate entity distinct from the personal affairs of each partners
TRUE
INVESTING ACTIVITIES involve the transformation of resources into goods and services
TRUE
a SHAREHOLDER refers to someone who owns stock in a company
FALSE / STOCKHOLDERS
the term receivable in the business refers to an amount owed by the business to its suppliers
FALSE / LIABILITIES
a corporation’s stockholders are personally liable for the company’s debts
FALSE / ARE NOT
operating activities include research and development, design, purchasing and production
TRUE
SOLE PROPRIETORSHIP have a significant disadvantage of shared profit among partners
FALSE / PARTNERSHIP
