Accounting Review Part 3*

Front

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

Back

fiscal period

Front

A fiscal period consisting of 12 consecutive months.

Back

fiscal year

Front

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

Back

work sheet

Front

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

Back

trial balance

Front

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

Back

prepaid expense

Front

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

Back

accrual basis of accounting

Front

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

Back

cash 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

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

Back

balance sheet

Front

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

Back

income statement