Accounting Chapter 6

Adjusting entries must be posted to the general ledger accounts.

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

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Only accounts with a balance are listed in the Trial Balance columns of a worksheet.

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When expenses are higher than sales, this results in a net income.

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

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The balance sheet column of the worksheet includes revenue and expenses.

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The information in the trial balance column of a work sheet is obtained from the general journal.

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

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Reporting income when the cash is received and expenses when the cash is paid is called the accrual basis of accounting.

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

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