Accounting Ch. 6

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

• Year

• Fiscal Period

• Yearly Period

• Accounting Period

When you prepare the __________________, you find out if you have a net income or net loss.

• balance sheet

• trial balance

• adjustments

• work sheet

Where do we get the account balances needed for the trial balance of a work sheet?

• journal

• balance sheet

• general ledger

• adjustments

______________________ update general ledger accounts at the end of a fiscal period.

• Adjustments

• Trial balances

• Journals

• Accountants

Which two accounts need adjustments at the end of a fiscal period?

• cash; sales

• supplies, capital

• supplies; prepaid insurance

• prepaid insurance, accounts payable

In an adjustment, the portions of supplies and prepaid insurance used become ________________ to the business.

• expenses

• useless

• forgotten

• assets

Which of the following is NOT a balance sheet account?

• cash

• drawing

• sales

• supplies

Which of the following is NOT a balance sheet account?

• cash

• advertising expense

• capital

• accounts receivable

Which of the following IS a balance sheet account?

• petty cash

• sales

• insurance expense

• utilities expense

Which of the following IS an income statement account?

• cash

• accounts payable

• supplies expense

• prepaid insurance