Ch 6 Study Guide

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

• Balance sheet
• Cash basis of accounting
• Fiscal period
• Fiscal year
• Income statement

A fiscal period consisting of 12 consecutive months.

• Balance sheet
• Cash basis of accounting
• Fiscal period
• Fiscal year
• Income statement

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

• Net income
• Net loss
• Prepaid expenses
• Trial balance
• Work sheet

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

• Net income
• Net loss
• Prepaid expenses
• Trial balance
• Work sheet

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

• Net income
• Net loss
• Prepaid expenses
• Trial balance
• Work sheet

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

• Accrual basis of accounting
• Adjusting entries
• Adjustments

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

• Balance sheet
• Cash basis of accounting
• Fiscal period
• Fiscal year
• Income statement

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

• Accrual basis of accounting
• Adjusting entries
• Adjustments

A financial statement that reports assets, liabilities, and owner’s equity on a specific date.

• Balance sheet
• Cash basis of accounting
• Fiscal period
• Fiscal year
• Income statement

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

• Balance sheet
• Cash basis of accounting
• Fiscal period
• Fiscal year
• Income statement