vocab
length of time for which a business summarizes its financial information and roports its financial perfomance
Fiscal period
reporting income when the cash is recieved
Cash basis of accounting
the difference between total revenue and total expenses when the total expenses is greater
net loss
fiscal period consisting of 12 consecutive months
fiscal year
reporting income when it is earned and expenses
accrual basis of accounting
journal entries recorded to update general ledger accounts at the end of a fiscal period
adjusting entries
columnar accounting form used to summmarize
work sheet
a financial statement that reports assets
balance sheets
changes recorded on a work sheet
adjustments
proof of equity of debits
Trial balance
a financial statement showing revenue
income statement
Cash paid for an expense in one fiscal period
prepaid expense
the difference between total revenue and total expenses when the total revenue is greater
net income