Ch6: Work Sheets & Adjustments
These are changes recorded directly on a work sheet to update general ledger accounts at the very end of a fiscal period.
Adjusting Entries (Adjustments)
This specific financial statement reports a business's assets, liabilities, and owner's equity on one specific date.
Balance Sheet
These are the journal entries recorded at the end of a fiscal period to prepare temporary accounts for the upcoming period by bringing their balances down to zero.
Closing Entries
This is the exact length of time for which a business chooses to summarize its financial data and officially report its performance.
Fiscal Period
This is the name of the fictional, monster-filled metropolis where Mike and Sulley live and work
Monstropolis
After all closing entries are successfully journalized and posted at the end of a fiscal period, this specific general ledger account's updated balance will perfectly match the final amount reported on the balance sheet for that same period .
Owner's Capital Account
This columnar accounting form is used by accountants to organize and summarize the general ledger information needed to build financial statements.
Work Sheet
This analytical method involves reporting an amount on a financial statement as a direct percentage of another item on that exact same statement.
Vertical Analysis
These accounts (such as assets, liabilities, and capital) accumulate financial information from one fiscal period to the next rather than clearing out.
Permanent Accounts (Real Accounts)
This term describes the entire continuous sequence of accounting activities required to record and report financial data during a period.
Accounting Cycle
Released in 1937, this classic film was the first feature-length animated movie ever made.
Snow White and the Seven Dwarfs
If your Trial Balance columns do not equal each other, but the difference between them can be evenly divided by 9, this is the type of math error you most likely made.
Transposed Number
This is calculated by taking your net income and dividing it by your total sales.
Net Income Ratio
This unique temporary account is used to summarize net income or net loss during closing, does not have a normal balance side, and is completely closed into Capital.
Income Summary Account
This specific branch of accounting focuses entirely on gathering and reporting financial information to internal users.
Managerial Accounting
In the 2015 Pixar film Inside Out, this sport represents one of the major "Personality Islands" in 11-year-old Riley's mind.
Hockey
This term describes cash paid for an expense in one fiscal period that is not actually used up until a later fiscal period.
Prepaid Expense
When preparing a statement of owner's equity, the information needed to calculate the current owner's capital is sourced from these two locations .
Work Sheet and Income Statement
To successfully close out any temporary account, you must record an amount equal to its current balance on this side of the account.
Opposite Side
This foundational accounting concept dictates that you must report revenue when it is earned and expenses when they are incurred, regardless of when cash changes hands.
Accrual Basis Accounting
This giant, commercial toy emporium in Toy Story 2 is owned by the chicken-suit-wearing collector who steals Woody.
Al's Toy Barn
When the Income Statement Debit column total is larger than the Income Statement Credit column total on your work sheet, it indicates the business has operated at this.
Net Loss
Rather than indicating an "estimate," an amount written inside parentheses on a financial statement actually means this.
Negative Amount
This specific verification tool is prepared after closing entries are posted to prove that debits still equal credits in the general ledger.
Post-Closing Trial Balance
This action represents the absolute final step in a standard business accounting cycle.
Preparing the Post-Closing Trial Balance
This is the exact street address written on the scuba mask that Marlin and Dory must memorize in order to rescue Nemo.
42 Wallaby Way, Sydney