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| Although each business sets up its own ____________ to meet its specific needs, all businesses follow the same basic accounting rules and procedures. | accounting system |
| A(n) _________________ buys raw materials and transforms them into finished products. | manufacturing business |
| A(n) _____________ firm provides accounting services to clients such as corporations and individuals. | public accounting |
| _______________ refers to the way a person uses her or his time, energy, and resources. | lifestyle |
| A(n) ______________ operates for some reason other than to earn money for its owners. | not-for-profit organization |
| ______________ are the rules accountants follow when recording and reporting accounting information. | GAAP |
| A person’s ___________is the set of unique qualities that makes that person different from all other people. | personality |
| ___________ are the principles a person lives by and the beliefs that are important to the person. | values |
| A person’s __________ are her or his abilities, such as the ability to think creatively or to make decisions. | skills |
| A(n) _____________ buys finished products and resells them to individuals or other businesses. | merchandising business |
| The amount of money earned by a business over and above the amount of money spent to keep a business operating is called __________ | profit |
| A business owned and operated by two or more persons is called a(n) __________ | partnership |
| A(n) ___________ operates to earn money for its owners. | for-profit business |
| A(n) __________ refers to the period of time covered by an accounting report. | accounting period |
| A(n) __________ is work that is built on a foundation of interest, knowledge, training, and experience. | career |
| _____________ is money invested in a business by its owner or owners or the money provided by banks or investors. | capital |
| The sharing of information and advice is called ____________ | networking |
| ______________ is concerned with preparing information for internal users. | management accounting |
| When it is assumed that a business will continue to operate into the future, the business is said to be a(n) ______________ . | going concern |
| When a business’s records and holdings are kept separate from its owner’s personal holdings, the accounting assumption of ____________ is being followed. | business entity |
| _____________ is concerned with preparing reports for external users such as investors or creditors. | financial accounting |
| _____________ summarize information about the financial status of a business. | financial reports |
| A business with a single owner is a(n) ________________. | sole proprietorship |
| People are free to produce the goods and services they choose in a(n) _______________. | free enterprise system |
| When a business organization is recognized by law to have a life of its own, it is called a(n) ___________. | corporation |
| ____________ can help you identify personal preferences that will have an impact on how satisfied you will be in a career choice. | personal interest tests |
| A(n) _____________ is the legal document giving a business the right to operate as a corporation. | charter |
| A business operating to provide a needed service for a fee is a(n) ______________. | service business |
| A business will experience a(n) ______________ if it spends more than it earns. | loss |
| A(n) _____________ is an individual who organizes a business and is willing to accept the risks involved in operating it. | entrepreneur |
| A(n) _____________ is an all-purpose chronological record used for recording a business’s transactions. | general journal |
| Anything of value that is owned or controlled by an individual or business organization is called _____________. | property |
| __________ are the prices paid for goods or services used to operate the business. | expenses |
| The revenue, expense, and withdrawals accounts are called ___________ | temporary capital accounts |
| The process of recording business transactions in a journal is called ____________ | journalizing |
| The owner’s claims to the total assets of the business are called ___________ | owner's equity |
| The legal rights to property that is owned are called _____________. | financial claims |
| The amount entered on the left side of the T account is the __________ | debit |
| __________ is the step in the accounting cycle where information is transferred from a journal entry to an individual account. | posting |
| The _____________ states that the assets of the business equal the liabilities plus the owner’s equity. | accounting equation |
| The total financial claims to the assets of a business are referred to as __________. | equity |
| A paper that serves as evidence that a transaction occurred is a(n) ______________. | source document |
| A(n) _____________ is a tool used to analyze a business transaction’s effect on an account. | T account |
| An economic event that causes a change in the assets, liabilities, or owner’s equity of a business is called a(n) ______________. | business transaction |
| The business or person selling you property on credit is called a(n) _____________. | creditor |
| An error discovered after posting has taken place requires a(n) _____________. | correcting entry |
| According to the ____________principle, revenue is recorded on the date it is earned even if cash has not been received on that date. | revenue recognition |
| ______________ are the debts of a business. | liabilities |
| The term ____________ is used to indicate that a business bought something on credit. | on account |
| A(n) ____________ is an accounting period that begins on January 1 and ends on December 31. | calendar year |
| Whether accounts are kept manually in a special book or on magnetic disks or tapes, the ledger is often called a(n) ___________. | general ledger |
| A(n) __________ is a record showing the increases or decreases, as well as the balance, of a specific asset, liability, or equity. | account |
| The total amount of money owed to a business’s creditors is called _____________. | accounts payable |
| A(n) ________ is a list of all the accounts used by a businesswhen journalizing its transactions. | chart of accounts |
| The increase side of an account is the same as its _________ side. | normal balance |
| The total amount of money to be received in the future for goods or services sold on credit is called ______________. | accounts receivable |
| A financial recordkeeping system in which each business transaction affects at least two accounts is called _______________. | double-entry accounting |
| _____________ are accounts whose balances are carried from one accounting period to the next. | permanent accounts |
| Things of value owed by a business are called __________. | assets |
| Income earned from the sale of goods or services is called ___________. | revenue |
| The accounts used by a business are kept on separate pages or cards in a book called a(n) _________. | ledger |
| A(n) _________ accounting period lasts 12 months and ends on the last day of a month other than December. | fiscal year |
| Any investment in a business by an owner is represented by the _________. | capital |
| hen an owner takes cash or other assets from the businessfor personal use, the transaction is called a(n) ___________. | withdrawal |
| A(n) _______ is an amount entered on the right side of the T account. | credit |
| The full range of accounting activities a business must complete to keep its accounting records in an orderly fashion is the _______________________________. | accounting cycle |
| First step in the accounting cycle | collect and verify source documents |
| Second step in the accounting cycle | analyze each transaction |
| Third step in the accounting cycle | journalize each transaction |
| Fourth step in the accounting cycle | post to the ledger |
| Fifth step in the accounting cycle | prepare a trial balance |
| Sixth step in the accounting cycle | prepare a work sheet |
