Chapter 6

Question 0

Work sheet

Answer 0

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

Question 1

Fiscal period

Answer 1

The length of time for which a Business summarizes and reports financial information

Question 2

trial balance

Answer 2

A proof of the equality of debits and credits in a general ledger

Question 3

Adjustments

Answer 3

Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period

Question 4

Balance sheet

Answer 4

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

Question 5

Income statement

Answer 5

A financial statement showing the revenue and expenses for a fiscal period

Question 6

Net income

Answer 6

The difference between total revenue and total expenses when total revenue is greater

Question 7

Net loss

Answer 7

The difference between total revenue and total expenses when total expenses is greater