Define Fiscal Period
A 12 month period of consecutive months that a business uses for it's financial reporting. Does not need to be calendar month of Jan - Dec.
Is a point in time like a camera or a period of time like a movie?
Period of time like a movie
Is a point in time like a camera or a period of time like a movie?
Point in Time -- Camera
On what criteria would a business choose their fiscal period?
Based on the business, usually when times are slower.
Name the two types of accounts that are listed on the Income Statement.
Expenses and Sales Revenue
Name the two types of accounts that are listed on the Balance Sheet.
Assets and Liabilities
What is on the third line of a Work Sheet title?
What is a Fiscal Period?
If there Sales Revenue is higher than the Expenses, then the result is what?
Profit -- Net Income
Define what an asset is to a business, as is shown on the balance sheet.
Something of value
If Sales Revenue is lower than expenses, then the result is what?
Loss or Net Loss
Define what a liability is to a company, as defined by its listing on the Balance Sheet.
Something the company owes
Explain the difference between accrual basis of accounting and cash basis of accounting.
Accrual basis adjusts as/when used, cash basis is when paid for.
Give an example of a 2 ledger accounts that would be listed on an Income Statement -- one debit and one credit
Any expenses and sales/revenues
Name two ledger accounts that can be found on a balance sheet -- one debit and one credit.
One asset and one liability