| A | B |
|---|
| merchandise a business has on had at the start of a fiscal period | beginning inventory |
| amount that is added to or subtracted from an account balance to bring that balance up to date | adjustment |
| an actual count of all the merchandise on hand and available for sale | physical inventory |
| the actual cost to the business of the merchandise sold to customer | cost of merchandise sold |
| the difference between the revenue earned from sales and the total cost of the merchandise sold | gross profit |
| prepared to organize all the data needed to update the accounts and to prepare the financial statements, etc | work sheet |
| require a debit and a credit of equal amount | all adjustments |
| corporations must pay this on its net income for the year | taxes |
