| A | B |
|---|
| Trial Balance | Includes all of the general ledger account balances. |
| Ruling | When a column of amounts need to be added or subtracted, a single line is drawn under the column. |
| General Ledger | A working paper used to collect information from the ledger accounts in one place. |
| Work Sheet | Working paper used to collect information from the ledger accounts in one place. |
| GAAP Matching Principle | Requires matching expenses incurred in an accounting period with revenue earned in the same period. |
| GAAP (Acronym) | Generally Accepted Accounting Principles |
| Net Income | The amount of revenue that remains after expenses for the period have been subtracted. |
| Net Loss | A decrease in owner's equity. |
| Balance Sheet | A report of the balances in permanent accounts on a specific date. |
| Income Statement | A report of the net income or net los for a specific period; sometimes called a profit-and-loss statement or earning statement. |
| GAAP | A collection of commonly followed accounting rules and standards for financial reporting. |
