Chapter 6 Work Sheet and Adjusting Entries - Terms

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

• accrual basis of accounting
• adjusting Entries
• cash basis accounting
• trial balance

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

• adjusting entries
• adjustments
• fiscal period
• fiscal year

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

• adjustments
• income statement
• net income
• trial balance

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

• balance sheet
• trial balance
• fiscal period
• fiscal year

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

• accrual basis of accounting
• cash basis of accounting
• balance sheet
• income statement

A columnar accounting form used to summarize financial information and reports its financial statements.

• balance sheet
• income statement
• trial balance
• work sheet

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

• adjusting entries
• adjustiments
• accrual basis of accounting
• cash basis of accounting

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

• assets
• liababilities
• prepaid expenses
• revenue

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

• balance sheet
• worsksheet
• income statement
• trial balance

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

• net adjustments
• net income
• net loss
• net profit