Chapter 6-8 Review

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

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

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

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

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

• True
• False

The value of the prepaid insurance coverage used during a fiscal period is an expense.

• True
• False

Following the same accounting procedures in  the same way each accounting period is an application of the accounting concept

• Matching Expenses with Revenue
• Accounting Period Cycle
• Consistent Reporting
• Going Concern

All accounts in a general ledger are listed on a post-closing trial balance.

• True
• False

Permanent accounts are also referred to as temporary accounts.

• True
• False

Preparing a worksheet at the end of the fiscal period to summarize the general ledger information needed to prepare financial statements is an application of the accounting concept Accounting Period Cycle.

• True
• False