Chapter 6 Accounting Study Guide

Adjustments
Changes record on a wrksht to UPDATE general ledger
Balance sheet
A financial statement that reports assets,liabilities, & owners equity
Fiscal period
The length of time for which business summarizes & reports financial information
Income statement
A financial statement showing the REVENUE & Expenses for a fiscal period
Net income
The difference between total revenue and total expenses when total revenue is greatee
Net loss
The difference between total revenue and total expenses when total expenses are greater
Trial Balance
A proof of equality of debits and credits in a general ledger
Work sheet
A columnar accounting form used to summarize