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22 Cards in this Set
- Front
- Back
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Fiscal Period |
The length of time for which a business summarizes and reports financial information *Jan-Dec *August-June |
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Work Sheet |
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements |
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Trial Balance |
A proof of the equality of debits and credits in a general ledger |
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Adjustments |
Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period |
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Balance sheet |
A financial statement that reports assets, liabilities, and owner's equity on a specific date |
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Income statement |
A financial statement showing the revenue and total expenses for a fiscal period |
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Net Income |
The difference between total revenue and total expenses when total revenue is greater |
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Net Loss |
The difference between total revenue and total expenses when total expenses are greater |
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Balance Sheet |
A financial statement that reports assets liabilities, and owners equity on a specific date |
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Income Statement |
A financial statement showing the revenue and total expenses for a fiscal period |
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Stakeholders |
Any persons or groups who will be affected by an action |
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Component Percentage |
The percentage relationship between one financial statement item and the total that includes that item |
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Adequate Disclosure |
Financial statements contain all information necessary to understand a business' financial statements |
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Going concern |
financial statements are prepared with the expectation that a business will remain in operation indefinitely |
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Accounting Period Cycle |
*Changes in financial information are reported for a specific period of time in the form of financial statements *Jan-Dec *Aug-July |
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Matching Expenses with Revenue |
Revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period |
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Adjusting Entries |
Journal entries recorded to update general ledger accounts at the end of a fiscal period |
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Permanent Accounts |
Accounts used to accumulate information from one fiscal period to the next *Assets *Liabilities *Owner's Equity |
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Temporary Accounts |
Accounts used to accumulate information until it is transferred to the owner's capital account *Revenue *Expense *Owner's Drawing |
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Closing Entries |
Journal entries used to prepare temporary accounts for a new fiscal period |
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Post-closing Trial Balance |
A trial balance prepared after the closing entries are posted |
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Accounting Cycle |
The series of accounting activities included in recording financial information for a fiscal period |
