Accounting 1 Vocabulary

Chapter 6

Directions: Use the textbook to find definitions for each vocab word and type
them below, attach an image related to each word to copy and paste below the
definitions. Once this document is complete you can submit and complete your
workbook vocab page.

1. Fiscal Period
a. Textbook Definition: the length of time for which a business
summarizes its financial information and reports it's financial
performance
b. Definition in your own words: So like a period where you look back
and record your financial performance

c. Picture:
2. Fiscal Year
a. Textbook Definition: a fiscal period consisting of 12 consecutive
months
b. Definition in your own words: So the same as before just with 12
months

c. Picture:
3. Work sheet
a. Textbook Definition: a columnar accounting form used to
summarize the general ledger information needed to prepare
financial statements
b. Definition in your own words: something used to organize accounts
 c. Picture:
4. Trail Balance
a. Textbook Definition: a proof of the equality of debits and credits in
a general ledger
b. Definition in your own words: report showing the closing balances
of all accounts

c. Picture:
5. Prepaid Expense
a. Textbook Definition: cash paid for an expense in one fiscal period
that is not used until a later period
b. Definition in your own words: future expenses that are paid in
advance

c. Picture:
6. Accrual Basis of Accounting
a. Textbook Definition: reporting income when it is earned and
expenses when they are incurred
b. Definition in your own words: recognizes business revenue and
matching expenses when they are generated

c. Picture:
7. Cash Basis of Accounting
a. Textbook Definition: reporting income when the cash is received
and expenses when the cash is paid
b. Definition in your own words: the basis of cash in accounting
 c. Picture:
8. Adjustments
a. Textbook Definition: changes recorded on a work sheet update
general ledger accounts at the end of a discal period
b. Definition in your own words: making changes

c. Picture:
9. Balance Sheet
a. Textbook Definition: a financial statement that reports the values of
a business's assets liabilities and owners equity on a specific date
b. Definition in your own words: sheet to record balances

c. Picture:
10.Income Statement
a. Textbook Definition: a financial statement showing the revenue and
expenses for a fiscal period
b. Definition in your own words: statement that shows income
 c. Picture:

11.Net Income
a. Textbook Definition: the difference between total revenue and total
expenses when total revenue is greater
b. Definition in your own words: how much your worth
c. Picture:
12.Net Loss
a. Textbook Definition: the difference between total revenue and total
expenses when total expenses are greater
b. Definition in your own words: how much you lost

c. Picture:
13.Adjusting Entries
a. Textbook Definition: journal entries recorded to update general
ledger accounts at the end of fiscal period
b. Definition in your own words: changing entries
c. Picture: