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;
22 Cards in this Set
- Front
- Back
Fiscal Period |
The length of time for which a business summarizes and reports financial information |
|
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 |
|
Adjustments |
Changes recorded on a work sheet to update general ledger accounts at the end of the 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 the revenue and 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 are greater |
|
Balance Sheet |
A financial statement that reports assets, liabilities, and owner's equity on specific date |
|
Income Statement |
A financial statement showing the revenue and total expenses for a fiscal period |
|
Stakeholders |
Any persons or groups who will be affected by an action |
|
Component Percentage
|
Thepercentage relationship between one financial statement item and the total thatincludes 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 activities and expenses associated with earning that revenue are recorded in the same accounting period |
|
Adjusting Entries |
Journal entries recorded to update general ledger accounts at the end of a fiscal period |
|
Permanent Accounts |
Accounts used to accumulate information from one fiscal period to the next |
|
Temporary Accounts |
Accounts used to accumulate information until it is transferred to the owner's capital account |
|
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 |
Series of accounting activities included in recording financial information for a fiscal period |