Chapter 6 - Accounting 1

Reporting income when it is earned and expenses when they are incurred.

• Cash basis of accounting
• accrual basis of accounting
• fiscal period
• fiscal year

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

• adjusting entries
• fiscal period
• fiscal year
• adjustments

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

• Net Income
• Net Loss

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

• Fiscal Period
• Fiscal Year

Reporting income when the cash is received and expenses when the cash is paid.

• Cash basis of accounting
• accrual basis of accounting
• fiscal period
• fiscal year

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

• general journal
• income statement
• balance sheet
• work sheet

Journal entries recorded to update general ledger accounts at the end of a fiscal period.

• adjusting entries
• fiscal period
• fiscal year
• adjustments

Cash paid for an expense in one fiscal period that is not used until a later period.

• trial balance
• prepaid expense
• net loss
• net inome

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

• balance sheet
• work sheet
• income statement
• general ledger

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

• Net Income
• Net Loss