Work Sheet
What is a financial statement showing the revenue and expenses for a fiscal period?
Income statement
The area of accounting that focuses on reporting information to external users.
What is financial accounting.
What is the statement of changes in owner's equity.
An accounting form used to summarize the general ledger information and used to prepare financial statements.
What is the difference between total revenue and total expenses when total revenue is greater?
What is net income.
The area of accounting that focuses on reporting information to internal users.
What is Managerial accounting.
When preparing a statement of changes in owners equity, where are the account balances obtained from?
The work sheet's balance sheet columns.
The heading on the work sheet consists of three lines. What information is included on each line?
In which balance sheet column is net income recorded on the work sheet?
What is the credit column.
What information does the statement of changes in owner's equity provide us?
What is information for the one-month period. 1st of the month to the end of the month.
The accounting equation, assets = liabilities + owner's equity best represents which financial statement?
What is the balance sheet.
What is:
1. To prove the debits equal credits
2. To separate general ledger account balances according to the financial statements to be prepared.
3. To calculate net income/net loss.
What 3 financial statements do accountants prepare at the end of the accounting period?
Income statement, statement of changes in owner's equity and balance sheet.
What is the formula for calculating current capital?
When does a company have a net loss for the period?
When the business expenses are greater than the revenue/sales for one accounting period.
Information for the trial balance is taken from what important accounting document?
What is the trial balance.
A financial statement that reports the changes in the capital account for a period of time.
What is statement of changes in owner's equity.
What four sections are included in a balance sheet?
When does an accountant draw a single rule?
When the amounts above are ready to be totaled.