Chapter 1 Key Terms and Concepts

The three types of businesses:

1) Manufacturing
2) Merchandising
3) Service
Three types of business organizations
1) Sole proprietorship
2) Partnership
3) Corporation
usiness Sta!eholders
The profession of accounting:
1) "inancial #ccounting vs$ Managerial #ccounting
2) Private #ccounting vs$ Public #ccounting
3) Certifications:
a) Certified Manage%ent #ccountant &CM#)
b) Certified Public #ccountant &CP#)
1) 'egulatory #gencies
(enerally #ccepted #ccounting Principles &(##P):
usiness )ntity Concept
Cost Concept
*b+ectivity Concept
,nit of Measure Concept
Types of accounts on alance Sheet
1) #ssets
2) -iabilities
3) ).uity
Types of accounts on /nco%e state%ent
1) 'evenues
2) )0penses
asic #ccounting ).uation: #ssets 1 -iabilities 2 Stoc!holders ).uity
"our "inancial State%ents &and order)
1) /nco%e State%ent
2) State%ent of 'etained earnings
3) alance Sheet
3) State%ent of Cash "lo4s