Accounting Book #6

Question 1

Income Statement

Answer 1

A financial statement that reports the revenue and expenses for a fiscal period.

Question 2

Net

Answer 2

The amount remaining after all deductions are made.

Question 3

Net Income

Answer 3

The difference between total revenue and total expenses when total revenue is greater than total expense.

Question 4

Net Loss

Answer 4

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

Question 5

Worksheet

Answer 5

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

Question 6

Statement of Owner’s Equity

Answer 6

the financial statement that reports the changes in capital that have occurred between the beginning and ending of a given fiscal period.

Question 7

Fiscal period

Answer 7

the length of the accounting cycle for which a business summarizes and reports financial information.

Question 8

Account Format

Answer 8

A balance sheet format that lists the assets on the left and the liabilities and equity on the right, similar to the accounting equation.

Question 9

Balance Sheet

Answer 9

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

Question 10

Report Format

Answer 10

The most common balance sheet format, with the asset section listed first, followed by the liability and equity sections. This is a two-column report similar to the income statement.