Chapter 6 Review

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

• Income Statement

• Balance Sheet

• Work Sheet

• Net Income

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

• Trial Balance

• Prepaid Expense

• Adjustments

• Cash Basis of Accounting

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

• Accrual Basis of Accounting

• Adjusting Entries

• Trial Balance

• Fiscal Period

A financial statement that reports the value of a business's assets, liabilities, and owner's equity on a specific date.

• Income Statement

• Trial Balance

• Adjustments

• Balance Sheet

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

• Accrual basis of Accounting

• Cash basis of Accounting

• Income Statement

• Adjusting Entries

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

• Net Profit

• Net Loss

• Trial Balance

• Income Statement

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

• Accrual Basis of Accounting

• Prepaid Expenses

• Cash Basis of Accounting

• Net Loss

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

• Fiscal Year

• Net Income

• Work Sheet

• Fiscal Period

A fiscal period consisting of 12 consecutive months.

• Fiscal Year

• Fiscal Period

• Adjustments

• Accrual Basis of Accounting

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

• Balance Sheet

• Adjusting Entries

• Trial Balance

• Adjustments