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Reviewer Chapter 9

This document defines key terms related to financial statements and the accounting cycle. It explains that the income statement shows profit or loss and is known as the statement of profit or loss, while the balance sheet shows assets, liabilities and equity and is known as the statement of financial position. It also outlines the major steps in the accounting cycle, from identifying transactions to closing entries and producing a post-closing trial balance.

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KYLA RENZ DE LEON
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40 views3 pages

Reviewer Chapter 9

This document defines key terms related to financial statements and the accounting cycle. It explains that the income statement shows profit or loss and is known as the statement of profit or loss, while the balance sheet shows assets, liabilities and equity and is known as the statement of financial position. It also outlines the major steps in the accounting cycle, from identifying transactions to closing entries and producing a post-closing trial balance.

Uploaded by

KYLA RENZ DE LEON
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CHAPTER 9

TERMS

Financial Statement - end product

Income statement - profit or loss is shown

Footing - adding or subtracting vertically

Reversing Entries - optional

Closing Entries - “zero out”

Closing Entries - also “closing the books”

Post closing trial balance - only real accounts

IF INCOME SUMMARY HAS CREDIT BALANCE THERE IS PROFIT

IF INCOME SUMMARY HAS DEBIT BALANCE THERE IS LOSS

Adjusted Trial Balance is extended to INCOME STATEMENT COLUMNS

Asset Liability Equity is extended to BALANCE SHEET COLUMNS

Balance Sheet is also known as STATEMENT OF FINANCIAL POSITION

- Shows ASSETS LIABILITIES AND EQUITY

Income Statement is also known as STATEMENT OF PROFIT OR LOSS

- Shows EXPENSES INCOME OR LOSS

TRUE OR FALSE

TANDAAN !!!!

- SA INCOME STATEMENT IF TOTAL CREDITS EXCEEDS TOTAL DEBIT


MERON PROFIT (MAY TUBO)
- LOSS NAMAN OR LUGI KAPAG TOTAL DEBITS EXCEEDS TOTAL CREDITS

- SA BALANCE SHEET KAPAG TOTAL DEBITS EXCEED TOTAL CREDITS MAY


TUBO OR PROFIT

- LOSS NAMAN OR LUGI IF TOTAL CREDITS EXCEEDS TOTAL DEBIT

BASTA KABALIGTARAN LANG NG INCOME STATEMENT ANG BALANCE SHEET

CLOSED ACCOUNT - NO BALANCE

OPEN ACCOUNT - MERON BALANCE

BALANCE SHEET - END OF REPORTING PERIOD

INCOME STATEMENT - COVERING THE REPORTING PERIOD

ENUMERATION

ACCOUNTING CYCLE

STEP 1 - IDENTIFYING

STEP 2 - ANALYZING AND JOURNALIZING

STEP 3 - POSTING

STEP 4 - UNADJUSTED TRIAL BALANCE

STEP 5 - ADJUSTING ENTRIES

STEP 6 - WORKSHEET

STEP 7 - CLOSING ENTRIES

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