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 statement 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