Accts. Ch 6

What is Consistent Reporting?

• When the same accounting procedures are applied in each accounting period

• When the report is completely submitted

• When the report is free of error

• When the report is reviewed

What is a Fiscal Period?

• consisting of six consecutive months

• consisting of twelve consecutive months

• Time for which a business summarizes its financial information and reports its financial performance

• Time for all account payable should be cancelled

What is a Fiscal Year?

• Time for all account receivable should be canceled

• consisting of twelve consecutive months

• Time for which a business summarizes its financial information and reports its financial performance

• Time for all account payable should be canceled

What is called columnar Accounting used to summarize the general ledger information needed to prepare financial statements?

• Balance Sheet

• Adjustment

• Work Sheet

• General Journal

Which one is NOT used for a Work Sheet?

• Summarize General Ledger Account Balances to prove that Debit equal Credits

• To double-check the source document of the General Journal

• Calculate the amount of net income or net loss for a fiscal period

• Bring General Ledger accounts up to date

What is called when reporting income when it is earned and expenses when they are incurred?

• Accrual basis of Accounting

• Generally Accepted Accounting Principles

• Double Book Keeping

• Cash basis of Accounting

What is called when reporting income when the cash is received and expenses when the cash is paid?

• Accrual basis of Accounting

• Generally Accepted Accounting Principles

• Double Book Keeping

• Cash basis of Accounting

What is the purpose of the adjustments column in the worksheet?

• To provide general information about your business

• To provide additional information to business management

• To prove the mistakes of the accountant

• Changes recorded vale on a worksheet to update the general ledger account at the end of a fiscal period

What financial statement reports the values of a business's assets, liabilities, and owner's equity on a specific date?

• Trial Balance

• Balance Sheet

• Adjustment

• Income Statement

What financial statement shows the revenue and expenses for a fiscal period?

• Trial Balance

• Balance Sheet

• Adjustment

• Income Statement