ACCT CH 6

fiscal period

• The length of time for which a business summarizes its financial information and reports its financial performance.
• A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
• The difference between total revenue and total expenses when total revenue is greater.

fiscal year

• A fiscal period consisting of consecutive months.
• A financial statement showing the revenue and expenses for a fiscal period.
• The length of time for which a business summarizes its financial information and reports its financial performance.

work sheet

• A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
• A financial statement that reports assets, liabilities, and owner's equity on a specific date.
• The difference between total revenue and total expenses when total expenses are greater.

trial balance

• A proof of the equality of debits and credits in a general ledger.
• A fiscal period consisting of consecutive months.
• Reporting income when the cash is received and expenses when the cash is paid.

prepaid expense

• Cash paid for anexpense in one fiscal period that is not used until a later period.
• A proof of the equality of debits and credits in a general ledger.
• Reporting income when earned and expenses when incurred.

accrual basis of accounting

• Reporting income when earned and expenses when incurred.
• Cash paid for anexpense in one fiscal period that is not used until a later period.
• Journal entries recorded to update general ledger accounts at the end of a fiscal period.

cash basis of accounting

• Reporting income when the cash is received and expenses when the cash is paid.
• Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period.
• Cash paid for anexpense in one fiscal period that is not used until a later period.

adjustments

• Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period.
• Journal entries recorded to update general ledger accounts at the end of a fiscal period.
• A proof of the equality of debits and credits in a general ledger.

balance sheet

• A financial statement that reports assets, liabilities, and owner's equity on a specific date.
• Reporting income when earned and expenses when incurred.
• Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period.

income statement

• A financial statement showing the revenue and expenses for a fiscal period.
• Reporting income when the cash is received and expenses when the cash is paid.
• A fiscal period consisting of consecutive months.