Balance Sheet Ch 6

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

• cash basis of accounting

• balance sheet

• adjustments

• accrual basis of accounting

• adjusting entries

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

• adjustments

• balance sheet

• cash basis of accounting

• accrual basis of accounting

• adjusting entries

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

• adjusting entries

• balance sheet

• adjustments

• accrual basis of accounting

• net income

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

• fiscal period

• accrual basis of accounting

• adjusting entries

• balance sheet

• adjustments

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

• cash basis of accounting

• adjustments

• accrual basis of accounting

• adjusting entries

• balance sheet

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

• work sheet

• accrual basis of accounting

• adjustments

• adjusting entries

• balance sheet

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

• adjusting entries

• accrual basis of accounting

• cash basis of accounting

• adjustments

• balance sheet

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

• prepaid expense

• adjusting entries

• adjustments

• balance sheet

• accrual basis of accounting

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

• accrual basis of accounting

• income statement

• adjustments

• adjusting entries

• balance sheet

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

• net loss

• accrual basis of accounting

• adjustments

• balance sheet

• adjusting entries