Accounting Ch 6 Study Guide

Use the terms below to answer the first 8 questions. You can place a check mark in the box to note which terms you have used, it will not affect your score.

• adjustments
• balance sheet
• fiscal period
• income statement
• net income

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

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

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

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

A financial statement that reports assets, liabilities, and Owner's Equity on a specific date

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

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

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

The accounting concept consistent reporting is being applied when a delivery business reports the number of deliveries made one year and the amount of revenue received for deliveries made the next year.

• True
• False