| A | B |
|---|
| Net Income | Amount of revenue that remains after expenses for period ave been subtracted |
| Net Loss | When expenses are greater than revenue |
| Work Sheet | Tool used to collect information from the ledger accounts in one place |
| Heading | Contains Who, What, When |
| Ruling | Drawing a line |
| Single line | Means entries are ready to be totaled |
| Double line | Means totals match |
| Trial Balance | End-of-period balances are entered here from the general ledger |
| Balance Sheet | Part of Work Sheet that contains Assets, Liabilities, and Owner's Equity |
| Income Statement | Section of Work Sheet that includes Revenue and Expense account balances |
| Matching Principle | Revenue and expenses are matched in an accounting period |
| Increase | Effect of Net Income on Capital |
| Decrease | Effect of Net Loss on Capital |
