BUS 230A- Chapter 1 Notes1

BUS 230A- Chapter 1 Notes1 - Konrad Thieme BUS 230A Chapter...

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Konrad Thieme BUS 230A Chapter 1 Notes-Vocabulary Transaction - a business activity such as buying and selling a good or service that results in an economic exchange with another business or individual. Accounting- the process if identifying, measuring, and communicating financial business information to various users. Inventory- goods purchased by a firm to be sold to its customers or used to make products to be sold to its customers. Profit- the difference between revenue and the costs of earning that revenue. Revenue- the amount a business earns for the goods it sells or the services it provides. Operating cycle- the sequence of business activities starting with: 1. getting cash 2. using cash to purchase inputs 3. changing those inputs into products or services 4. providing the product or service to customers, eventually getting cash back Certified Public Accountant (CPA)- someone who has met specific education and exam requirements that are set up by the states to make sure only individuals with the knowledge and other qualifications can perform financial statement audits of corporations Generally accepted accounting principals (GAAP)- a broad set of accounting guidelines that a firm must follow when preparing its financial statements. Securities and Exchange Commission (SEC)-
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BUS 230A- Chapter 1 Notes1 - Konrad Thieme BUS 230A Chapter...

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