test 2

Question 1

financial accounting reports

Answer 1

reporting financial info to external users

Question 2

manufacturing

Answer 2

a business that buys raw materials and transforms them into products

Question 3

business entity

Answer 3

business that exists independently of its owner’s personal holdings

Question 4

balance sheet (statement of financial position)

Answer 4

report of balances in all asset, liability, and owner’s equity

Question 5

accounting period

Answer 5

period of time covered by accounting report

Question 6

going concern

Answer 6

assumption that a business entity will continue to operate for indefinite time

Question 7

liabilities, debts

Answer 7

amount owed to creditors

Question 8

shareholders

Answer 8

people who invest money in shares

Question 9

merchandising

Answer 9

business that buys goods and sells for profit

Question 10

sole proprietorship

Answer 10

business owned by one person

Question 11

charter

Answer 11

legal written permission that gives a corporation certain rights and priveleges

Question 12

annual report

Answer 12

example of financial report produced by accounting department of a company

Question 13

working capital

Answer 13

money that a business uses for everday expenses or has available for spending

Question 14

earning

Answer 14

profit

Question 15

service business

Answer 15

business that provides service for a fee

Question 16

capital

Answer 16

money supplied by investors , banks, owners of businesses

Question 17

income statement, statement of income

Answer 17

report showing net income or loss for a period

Question 18

dividend

Answer 18

part of profit that a company pays to shareholders

Question 19

corporation

Answer 19

business organisation that is recognized by law to have a life of its own

Question 20

expenses

Answer 20

cost of goods and services that are used to operate a system

Question 21

accounting system

Answer 21

systemic process of recording and reporting the financial info. resulting from business transactions

Question 22

management accounting reports

Answer 22

reporting info to management, reports for internal users

Question 23

partnership

Answer 23

business by two or more persons who agree to operate the business as co owners

Question 24

bonds

Answer 24

loans that pay interest and are repaid at a fixed future date

Question 25

FAP

Answer 25

federally of accounting professions

Question 26

SET

Answer 26

stock exchange of thailand

Question 27

free enterprise system

Answer 27

everybody can produce goods and services and use money in way that they want

Question 28

shares

Answer 28

certificates representing units of ownership of a company

Question 29

investors

Answer 29

can lend money to companies by buying bonds

Question 30

bonds

Answer 30

loans that pay interest and are repaid at a fixed future date