Chapter 6-Chapter 8

Front 1

Fiscal Period

Back 1

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

(January-December

August-June: School fiscal period)

Front 2

Worksheet

Back 2

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

Front 3

Trial Balance

Back 3

A proof of the equality of debuts and credits in a general ledger.

Front 4

Adjustments

Back 4

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

Front 5

Balance Sheet

Back 5

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

Front 6

Income Statement

Back 6

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

Front 7

Net Income

Back 7

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

Front 8

Net Lost

Back 8

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

Front 9

Stakeholders

Back 9

Any group of people or person who will be affected by an action.

Front 10

Component Percentage

Back 10

The percentage relationship between one financial statement item and the total that includes that item.

Front 11

Adequate Disclosure

Back 11

Financial statements contain all information necessary to understand a business' financial statements.

Front 12

Going Concern

Back 12

Financial statements are prepared with the expectation that a business will remain in operation indefinitely.

Front 13

Accounting Period Cycle

Back 13

Changes in financial information are reported for a specific period of time in the form of financial statements.

Front 14

Matching Expenses with Revenue

Back 14

Revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period.

Front 15

Adjusting Entries

Back 15

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

Front 16

Permanent Accouonts

Back 16

Accounts used to accumulate information from one fiscal period to the next. (Assets, Liabilities, Owner's Equity.)

Front 17

Temporary Accounts

Back 17

Accounts used to accumulate information until it is transferred to the owner's capital account. (Revenue, Expense, and Owner's Drawing)

Front 18

Closing Entries

Back 18

Journal entries used to prepare temporary accounts for a new fiscal period.

Front 19

Post-Closing Trial Balance

Back 19

A trial balance prepared after the closing entries are posted.

Front 20

Accounting Cycle

Back 20

The series of accounting activities included in recording financial information for a fiscal period.