ACCOUNTING CHAPTER 6

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

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

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

• adjustments
• net income
• net loss
• trial balance

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

• fiscal period
• trial period
• adjustment period
• none of these

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

• Net loss
• Net Income
• Gross Profit
• Asset Income

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

• Income Statement
• Balance Sheet
• Work Sheet
• Trial Balance

A proof of the equality of debits and credit in general ledger.

• trial balance
• adjustments
• balance sheet
• work sheet

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

• Net Income
• Net Loss
• Asset Loss
• Gross Margin

Many businesses choose a one-year fiscal period that ends during a period of high business activity.

• True
• False

Making adjustments to general ledger accounts is an application of the Matching Expenses with Revenue accounting concept.

• True
• False

The balance of the supplies account PLUS the value of supplies on hand equals the up-to-date balance of the supplies account.

• True
• False