Accounting 6 Test

Adjustments

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

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 equality of debits and credits in a general ledger

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 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.