key term - 10-column worksheet

Definition

A 10-column worksheet is a tool used in accounting to organize and summarize financial data. It assists in preparing financial statements by providing a structured format for adjusting entries, trial balances, and final statement totals.

5 Must Know Facts For Your Next Test

1. The 10 columns typically include the trial balance, adjustments, adjusted trial balance, income statement, and balance sheet.
2. It helps ensure that debits equal credits after adjustments have been made.
3. Adjustments are made to align accounts with the accrual basis of accounting.
4. The worksheet is not a formal financial statement but aids in their preparation.
5. Errors in the worksheet can lead to incorrect financial statements.

Review Questions

Related terms

Adjusted Trial Balance:

A list of all accounts and their balances after adjusting entries have been made.

Accrual Basis Accounting:

Accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

Financial Statements:

Formal records of the financial activities of an entity, including the income statement, balance sheet, and cash flow statement.