| A | B |
|---|
| fiscal period | the length of time for which a business summarizes and reports financial information |
| work sheet | a columnar accounting form used to summarize the general ledger information needed to prepare financial statements |
| trial balance | a proof of the equality of debits and credits in a general ledger |
| adjustments | changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period |
| balance sheet | a financial statement that reports assets, liabilities, and owner’s equity on a specific date |
| income statement | a financial statement showing the revenue and expenses for a fiscal Period |
| net income | the difference between total revenue and total expenses when total revenue is greater |
| net loss | the difference between total revenue and total expenses when total expenses are greater |
| matching principle | principle requiring that the expenses incurred in an accounting period are matched with revenue earned in the same period |
| ruling | drawing a line; a single rule (line) drawn under a column of figures indicates that the entries above the rule are to be added or subtracted. If an amount is a total and no further processing is needed, a double rule is drawn under it. |
