Lesson 3 Flashcards
A list or monitoring of transactions entered into a business, maintained by a bookkeeper or accountant.
Record
An organization engaged in the trade of goods or services to consumers, exchanging goods/services for other goods, services, or money.
Business
The art of recording, classifying, summarizing, and interpreting financial transactions and events.
Accounting
The art and science of recording financial transactions of a business.
Bookkeeping
Systematically and chronologically recording business transactions in a general journal.
Recording
Grouping similar transactions in a general ledger.
Classifying
Transforming classified data into understandable reports (trial balance and financial statements).
Summarizing
Analyzing and interpreting recorded, classified, and summarized data for sound economic decisions.
Analyzing and Interpreting
Communicating through financial reports to help users make meaningful judgments.
Communicating
A business owned by only one individual; the most basic form of business.
Sole Proprietorship
Two or more persons contribute money, property, or industry to a common fund, intending to divide profits.
Partnership
An artificial being created by operation of law, with expressly authorized powers, attributes, and properties. It can exist for up to 50 years but requires renewal
Corporation
A person who invests in and becomes an owner of a corporation.
Stockholder or Shareholder
Operates through the use of profession or expertise, offering services.
Service Business
Buys and sells goods to customers.
Merchandising or Trading Business
Buys raw materials, processes them, and converts them into finished goods.
Manufacturing Business
