Ch 6

Question 1

the length of time for which a business summarizes its financial information and reports its financial performance

Answer 1

Fiscal period

Question 2

a fiscal period consisting of 12 consecutive months

Answer 2

Fiscal year

Question 3

a columnar accounting form used to summarize the general ledger information needed to prepare financial statements

Answer 3

Worksheet

Question 4

a proof of the equality of debits and credits in a general ledger

Answer 4

Trial balance

Question 5

cash paid for an expense in one fiscal period that is not used until a later period. See also deferred expense

Answer 5

Prepaid exp

Question 6

reporting income when earned and expenses when incurred

Answer 6

Accrual basis of accounting

Question 7

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

Answer 7

Cash basis of accounting

Question 8

changes Recorded on a work sheet to update general ledger accounts at the end of a fiscal period

Answer 8

Adjustments

Question 9

a financial statement that reports assets, liabilities and owners equity on a specific date

Answer 9

Balance sheet

Question 10

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

Answer 10

Income statement

Question 11

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

Answer 11

Net income

Question 12

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

Answer 12

Net loss

Question 13

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

Answer 13

Adjusting entrys