Chapter 6 Flashcards
adjustments
changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period
changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period
adjustments
balance sheet
a financial statement that reports assets, liabilities, and owner’s equity on a specific date
a financial statement that reports assets, liabilities, and owner’s equity on a specific date
balance sheet
fiscal period
the length of time for which a business summarizes and reports financial information
the length of time for which a business summarizes and reports financial information
fiscal period
income statement
a financial statement showing the revenue and expenses for a fiscal period
a financial statement showing the revenue and expenses for a fiscal period
income statement
net income
the difference between total revenue and total expenses when total revenue is greater
the difference between total revenue and total expenses when total revenue is greater
net income
net loss
the difference between total revenue and total expenses when total expenses are greater
the difference between total revenue and total expenses when total expenses are greater
net loss
trial balance
a proof of the equality of debits and credits in a general ledger
a proof of the equality of debits and credits in a general ledger
trial balance
work sheet
a columnar accounting form used to summarize the general ledger information needed to prepare financial statements
