BAF 3M: Chapter 1 Key Terms

4. Often clerical in nature and concerned with routine matters
5. A special form of business that is considered a type of legal person or legal entity
8. Process of gathering and preparing financial information about a business/organization to provide accurate and useful records in order to make informed decisions
10. A business enterprise, the equity of which belongs entirely to one person
12. Serves the general public for a fee in the same way as a doctor or a lawyer does
13. Recurring set of accounting procedures carried out during each fiscal period
15. A form of business in which more than one person shares in the ownership and operation of a business
17. Equal amounts of time

1. A business that buys raw materials, converts them into a new product, and sells these products to earn a profit (ex: paper mill)
2. Has met the requirements of at least one of the three accounting organizations in Canada
3. A business that does not make or sell a product as its main activity, rather it sells a service to the public (ex: tutoring company)
6. An organization that works to meet social needs and not for a financial profit (ex: Canadian Cancer Society)
7. Professional person who develops and maintains accounting systems, interprets data, prepares reports, and supervises the work of other employees
8. Employee who ensures that transactions are properly recorded and that supporting documents are present and correct. Carries out routine calculations and banking transactions
9. A business that buys goods and resells them at a higher price for a profit (ex: grocery store)
11. A business that produces materials directly from natural sources (ex: farm)
14. A special form of business that is owned by share-holders (also known as a Limited Company)
16. Examination and testing of the books, records, and procedures of a business in order to be able to express an opinion about its financial statements