Chapter 6 - Accounting 1

Front

Reporting income when it is earned and expenses when they are incurred.

Back

accrual basis of accounting

Front

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

Back

adjustments

Front

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

Back

Net Income

Front

The length of time for which a business summarizes financial information and reports its financial performance.

Back

Fiscal Period

Front

Reporting income when the cash is received and expenses when the cash is paid.

Back

Cash basis of accounting

Front

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

Back

work sheet

Front

Journal entries recorded to update general ledger accounts at the end of a fiscal period.

Back

adjusting entries

Front

Cash paid for an expense in one fiscal period that is not used until a later period.

Back

prepaid expense

Front

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

Back

income statement

Front

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

Back

Net Loss