Accounting Chapter 6 Vocab

Front

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

Back

Income Statement

Front

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

Back

Prepaid Expense

Front

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

Back

Trial Balance

Front

A financial statement that reports the value of a business's assets, liabilities, and owner's equity on a specific date.

Back

Balance Sheet

Front

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

Back

Accrual Basis of Accounting

Front

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

Back

Net loss

Front

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

Back

Cash Basis of Accounting

Front

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

Back

Fiscal Period

Front

A fiscal period consisting of 12 consecutive months.

Back

Fiscal Year

Front

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

Back

Adjusting Entries