Ch. 6 Worksheet for a Service Business

Front

The length of time for which a business summarizes and reports financial information is called a(n)

Back

fiscal period.

Front

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

Back

work sheet.

Front

Because a worksheet is used as a permanent record, it is prepared in pen or saved on the computer.

Back

False

Front

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

Back

trial balance.

Front

General ledger account titles are listed on a trial balance

Back

in the same order as they are listed on the chart of accounts.

Front

If an account has no balance, its account title is not listed on the trial balance.

Back

False

Front

When a business pays cash for an expense in one fiscal period, but the expense isn't used until a later period, the expense should be reported in the same fiscal period that it is used to produce revenue.

Back

True

Front

Changes recorded on a worksheet to update general ledger accounts at the end of a fiscal period are called

Back

adjustments.

Front

A financial statement that reports assets, liabilities, and owner's liability is called a(n)

Back

balance sheet.

Front

A financial statement showing the revenue and expenses for a fiscal period is called a(n)

Back

income statement.