Chapter 6

Question 1

Fiscal Period

Answer 1

The length of time for which a business summarizes and reports financial information

Question 2

Work Sheet

Answer 2

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

Question 3

Trial Balance

Answer 3

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

Question 4

Adjustments

Answer 4

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

Question 5

Balance Sheet

Answer 5

A financial statement that reports assets, liabilities, and owner’s equity on a specific date

Question 6

Income Statement

Answer 6

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

Question 7

Net Income

Answer 7

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

Question 8

Net Loss

Answer 8

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