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Chapters 6 and 7
Question | Answer |
---|---|
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements. (p. 159) | Work Sheet |
A proof of equality of debits and credits in a general ledger. (p. 160) | Trial Balance |
Reporting income when it is earned and expenses when they are incurred. (p. 163) | accrual basis of accounting |
Reporting income when the cash is received and expenses when the cash is paid. (p. 163) | cash basis of accounting |
Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period. (p. 163) | adjustments |
A financial statement that reports assets, liabilities, and owner's equity on a specific date. (p. 169) | balance sheet |
A financial statement showing the revenue and expenses for a fiscal period. (p. 170) | income statement |
The difference between total revenue and total expenses when total revenue is greater. (p. 171) | net income |
The difference between total revenue and total expenses when total expenses are greater. (p. 172) | net loss |
Journal entries recorded to update general ledger accounts at the end of a fiscal period. (p. 176) | adjusting entries |