Chapter 6 Review

A financial statement showing the revenue and expenses for a fiscal period.

Cash paid for an expense in one fiscal period that is not used until a later period.

A proof of the equity of debits and credits in a general ledger.

A financial statement that reports the value of a business's assets, liabilities, and owner's equity on a specific date.

Reporting income when it is earned and expenses when they are incurred.

The difference between total revenue and total expense when total expenses are greater.

Reporting income when the cash is received and expenses when the cash is paid.

The length of time for which a business summarizes financial information and reports its financial performance.

A fiscal period consisting of 12 consecutive months.

Journal entries recorded to update general ledger accounts at the end of a fiscal period.