Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
20 Cards in this Set
- Front
- Back
Fiscal Period |
The length of time for which a business summarizes and reports financial information. Ex: January to December or August to June |
|
Work Sheet |
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements |
|
Trial Balance |
A proof of the equality of debits and credits in a general ledger |
|
Adjustment |
Changes recorded on a worksheet to update general ledger accounts at the end of a fiscal period. |
|
Balance Sheet |
A financial statement that reports assets, liabilities, and owner's equity on a specific date. |
|
Income Statement |
A financial statement showing that revenue and a total expenses for a fiscal period. |
|
Net Income |
The difference between total revenue and total expenses when total revenue is greater. |
|
Net Loss |
The difference between total revenue and total expenses when total expenses is greater. |
|
Stakeholders |
Any persons or groups who will be affected by an action. |
|
Component Percentage |
The percentage relationship between one financial statement item and the total that included that item. |
|
Adequate Disclosure |
Financial statements contain all information necessary to understand a business' financial statements. |
|
Going Concern |
Financial statements are prepared with the expectation that a business will remain in operation indefinitely. |
|
Accounting Period Cycle |
Changes in financial information are reported for a specific period of time in the form of financial statements |
|
Matching Expenses with Revenue |
Revenue from business activity and expenses associated with earning that revenue are recorded in the same accounting period. |
|
Adjusting Entries |
Journal entries recorded to update general ledger account at the end of a fiscal period. |
|
Permanent Account |
Accounts used to accumulate information from one fiscal period to the next. Ex: assets, liabilities, owner's equity |
|
Temporary Accounts |
Accounts used to accumulate information until it is transferred to the owner's capital account. Ex: revenue, expense, owner's drawing |
|
Closing Entries |
Journal entries used to prepare temporary accounts for a new fiscal period |
|
Post-Closing Trial Balance |
A trial balance prepared after the closing entries are posted. |
|
Accounting Cycle |
The series of accounting activities included in recording financial information for a fiscal period. |