Business organization that has one owner.
Sole Proprietorship
Business organization that has at least two owners.
Partnership
System that measures the activities of a business in financial terms.
Accounting
Business organization that can continue indefinitely.
Corporation
Business organization where members loss is limited to their investment,
LLC
Business that provides a service.
Service
Business that makes its own products or buys a product from a manufacturing company to sell to its customers.
Merchandise
Business that makes a product and sells it to its customers.
Manufacturing
Procedures and guidelines that must be followed during the accounting process.
GAAP
A group of accounting standards and procedures that is adopted by the U.S. could replace GAAP
IFRS
The recording function of the accounting process.
Bookkeeping
Properties of value owned by a business.
Assets
The rights or financial claims of creditors and owners who supply assets to a firm.
Equities
Obligations that come due in the future.
Liabilities
Someone who has a claim to assets
Creditor
Owner's investment of equity in the company.
Capital
Type of asset acquired by a firm; it has a much shorter life than equipment.
Supplies
Amounts owed to creditors
Payable
Amount earned by performing a service for customer or selling goods.
Revenue
An asset that indicates amounts owed by customers.
Receivable
Cost incurred in running a business.
Expense
Records money or other assets an owner withdraws from a business for personal use.
Witdrawal