Accounting I A Chapter 7

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

• Adjustments

• Fiscal Period

• Income statement

• Worksheet

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

• Adjustments

• Fiscal Period

• Income statement

• Worksheet

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

• Adjustments

• Fiscal Period

• Income statement

• Worksheet

The difference between total revenue and total expense when the expense is greater.

• Adjustments

• Fiscal Period

• Net loss

• Worksheet

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

• Adjustments

• Income Statement

• Net loss

• Worksheet

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

• Trial Balance

• Income Statement

• Net loss

• Worksheet

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

• Trial Balance

• Income Statement

• Net loss

• Net Income

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

• True

• False