Vocabulary
A columnar accounting form used to summarize the
general ledger information needed to prepare financial
statements:
Work Sheet
During the closing entries process, we reduce which type of accounts to zero?
Temporary Accounts
Which three categories on a Chart of Accounts are displayed on a balance sheet?
Assets, Liabilities, and Equity
Which two categories on a Chart of Accounts are displayed on an income statement?
Revenue & Expenses
What is the correct order of categories on a Chart of Accounts? (There are 5)
Assets, Liabilities, Equity, Revenue, Expenses
The length of time for which a business summarizes its
financial information and reports its financial performance
Fiscal Period
Income summary... Is it a permanent or temporary account?
Temporary
Which of these accounts on a balance sheet is the ONLY temporary account?
A) Capital
B) Drawing
C) Accounts Payable
D) Accounts Receivable
B) Drawing
If expenses are greater than revenue for a business over the course of one month, this means the business experienced a ____ _____ for this month.
Net Loss
This account is on a work sheet, but remains unused until the closing entries process
Income Summary
A proof of the equality of debits and credits in a general:
Trial Balance
The capital account normally carries a ______ (debit/credit) balance, while the drawing account normally carries a ______ (debit/credit) balance.
credit ; debit
True or False: A balance sheet is a financial statement that reports assets, liabilities, and owner’s equity on a specific date.
True
True or False: A financial statement showing the revenue and expenses for a fiscal period.
True
In order from LEFT to RIGHT, what are the four sections on a work sheet?
Trial Balance, Adjustments, Income Statement, Balance Sheet (must be in order!!)
For his business, Robert is needing to produce a financial statement showing how profitable his business has been for a fiscal period. Which financial statement would help Robert accomplish his goals?
Income Statement
During step two of the closing entries process, we update account balances on a ________ _________
General Ledger
According to the balance sheet for company ABC, the following totals are shown:
Total of all asset accounts: $4,000
Total equity: $3,000
What should be the total of all liability accounts?
$1,000
During a fiscal period, Company MNO experienced a net loss of $1,000 for this fiscal period. Their expenses for the fiscal period were spending $1,000 on utilities and $2,000 on supplies. Therefore, how much were sales for this fiscal period? ($)
$2,000
When adding total debits and credits for all four sections of a work sheet, there are two sections where debits/credits will NOT initially equal. What are these two sections?
Income Statement & Balance Sheet
Journal entries recorded to update general ledger accounts at the end of a fiscal period:
(must say answer correctly)
Adjusting Entries
During step one of the closing entries process, we record all closing entries on a ________ _________
General Journal
According to the balance sheet for company XYZ, the following totals are shown for the current fiscal period:
Total of all asset accounts: $6,000
Total of all liability accounts: $1,500
The owner has taken a withdrawal of $1,000 for this fiscal period. Therefore, what should the current balance of the capital account be?
$5,500
During a fiscal period, Company JKL spent $2,000 on advertising, $3,000 on supplies, and $1,000 on utilities. It was determined the business experienced a net profit of $4,000 for this fiscal period. Therefore, how much were sales for this fiscal period? ($)
$10,000
To begin a work sheet, we first record balances in the Trial Balance section. Where do we get these balances from?
The general ledgers (from each account)