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Acct.
Chapter 7
Question | Answer |
---|---|
Fiscal Period | the length of time for which a business summarizes and reports financial information. |
Work Sheet | A columnar accounting form used to summarize the general ledger information needed to prepare financial statements. |
Trial Balance | A proof of the equality of debits and credits in a general ledger. |
Adjustments | Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period. |
Income Statement | A financial statement showing the revenue and expenses for a fiscal period. |
Net Income | The difference between total revenue and total expenses when total revenue is greater. |
Net Loss | The difference between total revenue and total expenses when total expenses is greater. |
Consistent Reporting | Applied when the same accounting procedures are followed in the same way in each accounting period. |
Accounting Period Cycle | Applied when changes in financial information are reported for a specific period of time in the form of financial statements. |
Matching Expenses with Revenue | Applied when revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period. |
To summarize general ledger account balances to prove that debits equal credits. | 4 Purposes of Work Sheet (1) |
To plan needed changes in general ledger accounts to bring account balances up to date. | 4 Purposes of Work Sheet (2) |
To separate general ledger account balances according to the financial statements to be prepared. | 4 Purposes of Work Sheet (3) |
To calculate the amount of net income or net loss for a fiscal period. | 4 Purposes of Work Sheet (4) |
Name of Company, Name of Report, Date of Report | Heading |
general ledger | Information for the trial balance is taken from the... |
Assets, Liabilities and Owner’s Equity | Balance Sheet accounts |
Revenue and Expenses | Income Statement accounts |