What is the length of time for which a business summarizes and reports financial information called?
Fiscal Period
100
What two accounts are affected by the adjustment for supplies?
Supplies & Supplies Expense
100
What two financial statements are created from the work sheet?
Income Statement and Balance Sheet
100
The Work Sheet is a planning tool, not a permanent record. What two accounting tools are permanent records that cannot be erased when a mistake is found?
General Ledger and General Journal
100
Describe in which records errors can be erased or cannot be erased.
Work sheet - yes, you can erase the mistake and write the correct amount. Ledgers & Journals - no, they are permanent records and cannot be erased.
200
What are the changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period?
Adjustments
200
The value of prepaid insurance coverage used during a fiscal period is no longer an asset, but a what?
Expense
200
What are three types of accounts listed on the Balance Sheet?
Assets, Liabilities, and Owner's Equity
200
When there is a Net Income which two columns have the Net Income written in them?
Income Statement Debit and Balance Sheet Credit
200
If an error is found in a ledger account, what should you do?
Cross out the incorrect amount and write the correct amount above it.
300
What is the difference between total revenue and total expenses when total revenue is greater?
Net Income
300
What is the equation to determine the amount of supplies used during a fiscal period?
Supplies Balance at the End of Fiscal Period - Supplies on Hand = Supplies used during the Fiscal Period
300
What are two types of accounts listed on the Income Statement?
Revenue and Expenses
300
If there is a Net Loss, which two columns on the work sheet have the Net Loss added to the subtotal?
Income Statement Credit and Balance Sheet Debit
300
If the trial balance columns are not equal and the difference is 1, the error is often where?
In addition
400
A proof of the equality of debits and credits in a general ledger is called?
Trial Balance
400
Making adjustments to general ledger accounts is an application of which accounting concept?
Matching Expenses with Revenue
400
What is the accounting concept that requires you to report changes in financial information for a specific period of time in the form of financial statements?
Accounting Period Cycle
400
On a work sheet, which four accounts have balances that are updated by adjustments and then extended to the Income Statement and Balance Sheet columns?
Supplies, Prepaid Insurance, Supplies Expense, and Insurance Expense
400
If a pair of work sheet columns do not balance and the difference between the totals is an amount that appears elsewhere on the work sheet, the error is probably from where?