Accounting Chapter 6

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

• net loss

• income statement

• work sheet

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

• adjustments

• balance sheet

• net loss

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

• adjustments

• fiscal period

• income statement

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

• net loss

• income statement

• trial balance

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

• balance sheet

• fiscal period

• income statement

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

• net income

• trial balance

• work sheet

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

• net income

• trial balance

• adjustments

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

• balance sheet

• income statement

• trial balance

Many businesses choose a one-year fiscal period that ends during a period of high business activity.

• False

• True

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

• False

• True