Definitions
Prepaid Expenses:
Are expenses payments made in advance
what is the purpose of an income statement
to calculate net loss or net income
What order are the accounts listed in a balance sheet?
Assets, Liabilities, Owner's Equity
What headings does the worksheet have?
Who, What, When
Classified Balance Sheet:
Lists items in special categories such as current and fixed assets, and current and long-term liabilities.
The income statement shows the operating results for a business over a period
of time? T or F
true
A balance sheet presents the financial position of a business over a period of time? T or F
False
at a specific date
what are the 3 major headings?
Trial balance
Income Statement
Balance sheet
Worksheet:
is a form that organizes the accounting data required for the preparation of financial statements.
what side does expense accounts go on?
debit column
a report form balance sheet is prepared in a _____ format
vertical
the worksheet is used to complete financial statements at the end of the _____ period
fiscal
Current Asset:
Is cash of some other asset that, in the normal course of operations, will be converted to cash or sold or consumed within the year. Current assets are listed in order of liquidity
What accounts are involved in an income statement?
Sales and Expense accounts
which accounts from the trial balance are extended to the balance sheet?
assets, liabilities, OE accounts
where does the worksheet appear in the accounting cycle?
step 5, or after trial balance