Accounting I - Chapter 6
Terms in this set (21)
The length of time for which a business summarizes and reports financial information.
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
A proof of equality of debits and credit sin a general ledger.
Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period.
A financial statement that reports assets, liabilities, and owner's equity on a specific date.
A financial statement showing the revenue and expenses for a fiscal period.
The difference between total revenue and total expenses when total revenue is greater.
The difference between total revenue and toal expenses when total expenses are greater.
Even though a work sheet is used as a permanent record, it is prepared in this
General ledger account titles are listed on a trial balance in this order
As they are listed on the chart of accounts
If an account has no balance, its account title
is listed in the trial balance
When a business pays cash for an expense in one fiscal period, but the expense isn't used until a later period, the expense should be
reported in the same fiscal period that it is used to produce revenue
If you find an incorrect amount on a work sheet;
erase the error and replace it with the correct amount
If a pair of work sheet columns does not balance and an error cannot be found on the work sheet, look for an error in posting from the journal to the
general ledger accounts
Mixing the order of numbers; an example of this is $45.00 written as $54.00
Occurs when numbers are moved to the right or left in an amount column; an example would be $12.00 written as $120.00
Errors in permanent records
should never be erased
The same accounting procedures are followed in the same way in each accounting period
As each item in an account or journal entry is verified
place a check mark next to it
If two column totals are not in balance, first
find the difference
When finishing a worksheet, you must
calculate net income, then total and rule