Accounting Chapter 6

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

• prepaid expense
• prepaid insurance
• accrued expense
• worksheet

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

• adjusting entries
• controlled entries
• balance sheet
• income statement

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

• balance sheet
• income statement
• worksheet
• trial balance

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

• income statement
• net income
• accrual basis of accounting
• cash basis of accounting

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

• fiscal period
• fiscal stage
• full year
• trial balance

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

• Netting it All
• Net Loss
• Net Income
• Revenue

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

• adjustments
• alignments
• balances
• expenses

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

• cash basis of accounting
• accrual basis of accounting
• income basis of accounting
• balance basis of accounting

The amount of the supplies used during a fiscal period is an expense.

• True
• False

Net income on a work sheet is calculated by subtracting the Income Statement Debit column total from the Income Statement Credit column total.

• True
• False