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22 Cards in this Set
- Front
- Back
fiscal period |
the length of time for which a business summarizes and reports financial information |
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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 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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stakeholders |
any persons or groups who will be affected by an action |
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component percentage |
the percentage relationship between on financial statement item and the total that includes that item |
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adequate disclosure |
financial statements contain all information necessary in 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 |
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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 |
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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 trail 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 |