accounting 6

Question 1

consistent reporting

Answer 1

applied when the same accounting procedures are followed in the same way in each accounting period

Question 2

fiscal period

Answer 2

length of time which a business summarizes its financial info and reports its performance

Question 3

fiscal year

Answer 3

a fiscal period consisting of 12 consecutive months

Question 4

work sheet

Answer 4

a columnar accounting form used to summarize the general ledger info need to prepare financial statements

Question 5

prepaid expense

Answer 5

cash paid for an expense is one fiscal period that us not used until a later period

Question 6

accrual basis of accounting

Answer 6

reporting income when it is earned and expenses when they are incurred

Question 7

cash basis of accounting

Answer 7

reporting income when the cash is received and expenses when the cash is paid

Question 8

adjustments

Answer 8

change recorded on a work sheet to update general ledger accounts at the end of a fiscal period are period

Question 9

balance sheet

Answer 9

a financial statement that reports the value of a business’s assets, liabilities, and owners equity on specific date

Question 10

income statement

Answer 10

a financial statement showing the revenue and expenses for a fiscal period

Question 11

net income

Answer 11

the difference between total revenue and total expense when total revenue is greater

Question 12

net loss

Answer 12

the difference between total revenue and total expenses when total expense are greater

Question 13

adjusting entires

Answer 13

journal entires recorded to update general ledger accounts at the end of a fiscal period