Extending to Financial Statements (Balance Sheet, Income Statement)
Finding and Correcting Work Sheet Errors
Potpourri
100
The length of time for which a business summaryizes and reports financial information.
What is a fiscal period?
100
Changes recorded on a worksheet to update general ledger accuonts at eh end of a fiscal period.
What are adjustments?
100
Balance Sheet columns.
Where the assets, liabilities, and owner's equity extend to?
100
The difference is 1.
What is an error in addition?
100
Assets = Liabilities + Owners Equity
What is the accounting equation?
200
A columnar accounting form used to summarize the general ledger infromation needed to prepare financial statements.
What is a work sheet?
200
When revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period.
What is the concept: matching expenses with revenue?
200
Income Statement.
Where the revenue and expense balances extend to?
200
The difference could be divided by 2.
What could be an error in the recording of an incorrect column in the journal or in an account?
200
A list of accounts used by a business.
What is a chart of accounts?
300
A proof of the equality of debits and credits in a general ledger.
What is a trial balance?
300
Where the amount of supplies used during the period should be recorded.
What is Supplies Expense?
300
The difference between total revenue and total expenses wehn total REVENUE is greater.
What is net income?
300
When numbers are moved to the right or left in an amount column.
What is a "slide"?
300
A memorandum, calculator tapes, receipts, check, sales invoice.
What are 3 source documents?
400
The name of the business, the name of the report, and the date of the report.
What is in the heading of the work sheet? (in order).
400
What is the balance of Supplies, What should the balance be for this account, What must be done to correct the account balance, and what adjustment is made.
What are the four questions to ask when analyzing each adjustment?
400
The difference between total revenu and total expenses when total EXPENSES are greater.
What is net loss?
400
To prevent errors.
What is to work carefully at all times?
400
General debit and cash credit.
What are the columns to record paying cash for insurance when journalizing?
500
The general ledger.
Where does the information for a trial balance come from?
500
Writing the debit amount in the work sheet's Adjustments Debit column, writing the credit amount in the work sheet's Credit column, and labeling the two parts of the adjustment with the next available small letter.
What are the 3 steps when recording the adjustments on a work sheet?
500
Lines drawn after you have proved totals and checked the equality for each pair of columns for the Income Statement and Balance sheet.