| A | B |
|---|
| Fiscal Period | The length of time for which a business summarizes and reports financial information. |
| Work Sheet | A columnar accounting form used to summarize the general ledger information needed to prepare financial statements. |
| Trial Balance | A proof of the equality of debits and credits in a general ledger. |
| Adjustments | Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period. |
| Balance Sheet | A financial statement that reports assets, liabilities, and owner’s equity on a set date. |
| Income Statement | A financial statement showing the revenue and expenses for a fiscal period. |
| Net Income | The difference between total revenue and total expenses when total revenue is greater. |
| Net Loss | The difference between total revenue and total expenses when total expenses is greater. |
| Cash, petty cash, supplies, prepaid insurance, liability accounts, owner's capital, and owner's drawing | Are all expanded to the balance sheet. |
| Sales, and all expenses | Are all expanded to the income statement. |
| Consistent Reporting | Applied when the same accounting procedures are followed in the same way in each accounting period. |
| Accounting Period Cycle | Applied when changes in financial information are reported for a specific period of time in the form of financial statements. |
| Matching Expenses with Revenue | Applied when revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period. |
| most likely a $25 amount written in the wrong column (since 50 is divisible by 2) | If TB columns aren't equal & the difference is $50, the error is |
| most likely a transposed number or a slide (since 27 is divisible by 9) | If TB columns aren't equal & the difference is 27, the error is |
| most likely an addition error | If TB columns aren't equal & the difference is 1, the error is |
| any time a business needs it - but must be reported at the end of fiscal periods | Financial information may be reported |
