Acctg 1 - Chapter 6 Review

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

• Net income

• trial balance

• work sheet

• balance sheet

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

• adjustments

• balance sheet

• fiscal period

• income statement

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

• balance sheet

• fiscal period

• income statement

• net income

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

• net income

• net loss

• trial balance

• fiscal period

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

• adjustments

• balance sheet

• fiscal period

• income statement

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

• net income

• income statement

• trial balance

• work sheet

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

• balance sheet

• fiscal period

• net loss

• net income

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

• balance sheet

• income statement

• trial balance

• work sheet

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