Chapter 6 Vocab

Question 1

the length of time for which a business summarizes and reports financial information

Answer 1

Fiscal period

Question 2

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

Answer 2

Work sheet

Question 3

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

Answer 3

Trial balance

Question 4

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

Answer 4

Adjustments

Question 5

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

Answer 5

Balance sheet

Question 6

a financial showing the revenue and expenses for a fiscal period

Answer 6

Income statement

Question 7

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

Answer 7

Net income

Question 8

the difference between total revenue and total expenses when total expenses are greater

Answer 8

Net loss