Accounting 1 Chapter 6 Cengage

When expenses exceeds revenue.

• net income

• income statement

• net loss

• cash basis

Changes recorded on a worksheet to update ledger accounts.

• adjusting entries

• adjustments

• accrual basis

• work sheet

Financial statement that reports assets, liabilities, and owner's equity.

• income statement

• work sheet

• general ledger

• balance sheet

Cash paid for an expense not used until later.

• prepaid expense

• cash basis

• accrual basis

• net income

Accounting period.

• fiscal year

• fiscal period

• accrual basis

• income statement

A proof of the equality of debits and credits.

• balance sheet

• income statement

• trial balance

• work sheet

Financial statement showing revenue and expenses.

• balance sheet

• general journal

• income statement

• work sheet

Accounting form used to summarize general ledger information.

• work sheet

• balance sheet

• income statment

• general ledger

When revenue exceeds expenses.

• net income

• net loss

• cash basis

• accrual basis

Twelve consecutive months.

• fiscal period

• fiscal year

• accounting period

• calendar year