Accounting Ch. 6 - Lecture notes 6 PDF

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Belmont University Accounting Principles 1 Ch. 6 Lecture Notes...

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Accounting: Ch. 6 Fiscal Period The length of time for which a business summarizes its financial information and reports its financial performance Fiscal Year A fiscal period consisting of 12 consecutive months Worksheet 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 Prepaid Expense cash paid for an expense in one fiscal period that is not used until a later period Accrual Basis of Accounting reporting income when it is earned and expenses when they are incurred Cash Basis of Accounting reporting income when the cash is received and expenses when the cash is paid Adjustments changes recorded on a worksheet to update general ledger accounts at the end of a fiscal period Balance Sheet a financial statement that reports assets, liabilities, and owners 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 Adjusting Entries journal entries recorded to update general ledger accounts at the end of a fiscal period...