Bookkeeping Exercises, Developing the Principles of Debits and Credits, Recording Transactions, the Trial Balance, Balance Sheet, Statement of Profit ... Bookkeeping Students (Classic Reprint)

Chapter I BOOKKEEPING AND ACCOUNTING 1. Each Individual requires food, clothing, education, amusement, and many other things necessary for his comfort and enjoyment. These necessities and luxuries can be obtained with money, which is the medium of exchange. The individual secures money through a compensation for services rendered to others, income from investment, or the profit resulting from the operations of a business. James Brown is employed as salesman for the Citizens Motor Car Co.; his income is the salary received for the services rendered. J. W. Smith owns the building in which the Citizens Motor Car Co. is operated; his income is the rent received from the building, which is his investment. W. O. Winkler owns the Citizens Motor Car Co.; his income is the profit made by selling automobiles at a price greater than the cost. 2. AB usiness. The one who sells to the individual the food, clothing, education, amusement, or other things which he needs for his comfort and enjoyment, is said to be engaged in business, and the operations in connection therewith are referred to as a business. The operations include the buying and selling of the commodities in which the business deals, at a place of business and under a name selected by the owner. There are many kinds of businesses, each supplying a specific demand; there are many businesses of the same kind, each undertaking to supply the same demand. John Jones owns and operates a drug store at 405 Main Street, known, and advertised to the public as The Central Drug Store. Mr Jones is a business man because he operates a business. The operations of his business include the buying and selling of medicine and drugs as well as the other articles a drug store usually handles, and his business is referred to as a drug business. 3. The Purpose of aB usiness. A business is organized and operated in order that the ow
(Typographical errors above are due to OCR software and don't occur in the book.)