Worksheet
A sale for which payment will be made at a later date.
Increase in equity resulting from the sale of a good or service.
What is Revenue?
Debit means...
Credit means...
What is Right?
Recording transactions in a journal is called ______.
What is Journalizing?
Anything of value that is owned.
What is an Asset?
Principles of right and wrong that guide an individual.
What are Ethics?
A business that performs an activity for a fee.
What is a Service Business?
A business owned by one person.
What is a proprietorship?
The equation showing the relationship between assets, liabilties, and owner's equity.
What is the Accounting Equation?
The difference between total revenue and total expenses when total revenue is greater.
What is Net Income?
The difference between total revenue and total expenses when total expenses are greater.
What is Net Loss?
Journal entries recorded to update general ledger accounts at the end of a fiscal period.
What are Adjusting Entries?
The difference between assets and liabilities.
What is Owner's Equity?
An amount owed.
What is a Liability?
Reporting income when it is earned and expenses when they are incurred.
What is Accrual Basis of Accounting?
Reporting income when cash is received and expenses when the cash is paid.
What is Cash Basis Accounting?
Changes recorded on a work sheet to update the general ledger accounts at the end of a fiscal period.
What are adjustments?
A financial statement that reports assets, liabilities, and owner's equity on a specific date..
What is a Balance Sheet?
A financial statement showing the revenue and expenses for a fiscal period.
What is an Income Statement?
The length of time for which a business summarizes its financial information and reports its financial performance.
What is a Fiscal Period?
A fiscal period consisting of 12 consecutive months.
What is a Fiscal Year?
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
What is a Worksheet?
A proof of equality of debits and credits in a general ledger.
What is the Trial Balance?
Cash paid for an expense in one fiscal period that is not used until a later period.
What is Prepaid Expense?