| A | B |
|---|
| Work Sheet | A working paper used to collect information from the ledger accounts for use in completing end-of-period activities. |
| Ruling | Drawing a line |
| Matching principle | Requires that the expenses incurred in an accounting period are matched with revenue earned in the same period. |
| Net Income | The amount by which total revenue exceeds total expenses for the accounting period. |
| Net Loss | The amount by which total expenses exceed total revenue for the accounting period. |
| Balance Sheet section | The part of the worksheet where asset, liability, and owner's equity accounts are extended. |
| Income Statement section | The part of the worksheet where revenue and expense accounts are extended. |
| Trial Balance | The first tow columns of the work sheet are used to enter this. |
| Extending | Transferring balances from the Trial Balance section of the worksheet to either the Balance Sheet section or the Income Statement section. |
