Accounting ch 1-4 vocab

Accounting ch 1-4 vocab - Accounting-an information system...

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Accounting-an information system that measures, processes, and communicates financial information about an economic entity Business-an economic unit that aims to sell goods and services to customers at prices that will provide an adequate return to tits owners Profitability-ability to earn enough income to attract and hold investment capital Liquidity- the ability to have enough cash to pay debts when they are due Operating activities-selling goods and services to customers, employing managers and workers, buying and producing goods and services, and paying taxes Investing activities-spending the capital a company receives in productive ways that will help it achieve its objectives; buying land, buildings, equipment, and other resources needed to operate the business Financing activities-obtaining adequate funds, or capital, to begin operations and too continue operating; capital from creditors, banks, suppliers, and from owners Performance measures-indicate whether managers are achieving their business goals and whether
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Accounting ch 1-4 vocab - Accounting-an information system...

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