6.1 creating a work sheet Flashcards
applied when the same accounting procedures are filled in the same way in each accounting period
consistant report
a fiscal period consisting of twelve consecutive months is called
fiscal year
the length of time for which a business summarizes its financial information and reports its financial performance is called a
fiscal period
a columnar accounting form used to summarize the general ledger information needed to prepare financial statements is called a
work sheet
prove that debit equal credit
to bring account balances up to date
separate general ledger account according to the financial statements
calculate net income or net worth
reasons
cash paid for an expense in one final period that is not used until a later period its called a
prepaid expense
reporting income when it is earned and expenses when they are incurred is called the
accrual basis of accounting
reporting income income when the cash is received and expenses when the cash is paid is called the
cash basis of accounting
changes recorded on a work sheet to update general ledger accounts at the end of fiscal period is called
adjustments
a financial statement that reports the value of a business assets, liabilities, and owners equity on a specific date is called a
balance sheet
a financial statement showing the revenue and expenses for a fiscal period is called a
income statements
the difference between total revenue and total expenses when total revenue is greater is called
net income
the difference between total revenue and total expenses when total expenses are greater is called
net loss
three errors on a worksheet
ay be errors in the accounting records, there may be errors in calculations, an amount may be entered in the wrong column
journal entries recorded top update general ledger accounts at the end of a fiscal period are called
adjusting entries
