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Accounting C6
Century 21 Chapter 6
Term | Definition |
---|---|
1. Accounting Period Cycle concept | Changes in financial information are reported for a specific period of time in the form of financial statements |
2. adjustments | changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period |
3. balance sheet | a financial statement that reports assets, liabilities, and owner’s equity on a specific date |
4. Certified Public Accountant | An accountant who has passed the uniform certified public accounting exam and met the licensing requirement for a state |
5. Consistent Reporting concept | Same accounting procedures are followed in the same way in each accounting period. |
6. fiscal period | the length of time for which a business summarizes and reports financial information |
7. Fiscal year | An accounting period of one year |
8. income statement | a financial statement showing the revenue and expenses for a fiscal period |
9. Matching Expenses with Revenue Concept | The revenue from business activities and the expenses associated with earning that revenue are recorded in the same accounting period |
10. net income | the difference between total revenue and total expenses when total revenue is greater |
11. net loss | the difference between total revenue and total expenses when total expenses are greater |
12. Slide Error | numbers or decimal point were moved right or left (i.e., 12.00 recorded as 120.00 or 350.00 as 35.00) |
13. Transposition error | two numbers have been reversed (i.e., 53 instead of 35). |
14. trial balance | a proof of the equality of debits and credits in a general ledger |
15. work sheet | a columnar accounting form used to summarize the general ledger information needed to prepare financial statements |