| A | B |
|---|
| adjusting entries | The adjustments recorded on the work sheet must be entered as this in the general journal to update the balances of the general ledger accounts. |
| adjustment | An amount that is added to or subtracted from an account balance to bring that balance up-to-date. |
| balance sheet | The ()reports the updated balances of all asset, liability, and stockholders' equity accounts as of a specific date. |
| beginning inventory | This is the merchandise on hand at the start of the period. |
| closing entries | The journal entries made to transfer the balances of temporary accounts to a permanent general ledger account. |
| cost of merchandise sold | This is the actual cost to the business of the merchandise sold to customers during the period. |
| ending inventory | The merchandise on hand at the end of the fiscal period. |
| gross profit on sales | This is the amount of profit made during the period before deducting expenses. |
| income statement | A report of the net income or net loss earned by the business during the fiscal period. |
| inventory | This refers to the items of merchandise the business has in stock available for sale. |
| net income | When revenue is greater than total expenses, this is experienced. |
| net loss | When revenue is less than total expenses, this is experienced. |
| net purchases | This is the amount of all costs related to the merchandise purchased during the period. |
| net sales | This is the amount of sales for the period less and sales discounts and sales returns and allowances. |
| operating expenses | These are costs that expire or are incurred to earn revenue for the business. |
| operating income | The taxable income of a business before federal corporate income taxes are deducted. |
| post-closing trial balance | The () is prepared to prove the equality of the debits and credits in the general ledger after all adjusting and closing entries have been posted. |
| statement of retained earnings | The () reports the changes to the Retained Earnings account during the period. |
| worksheet | A working paper used to collect information from the general ledger for use in preparing financial statements. |
