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| fiscal period | the length of time for which a business summarizes and reports financial information |
| shareholder | an owner of one or more shares of a corporation |
| adjusting entries | journal entries recorded to update general ledger accounts at the end of a fiscal period |
| trial balance | a proof of the equality of debits and crdits in a general ledger |
| net loss | the difference between total revenue and total expenses when total expenses are greater |
| net income | the difference between total revenue and total expenses when total revenue are greater |
| temporary accounts | accounts used to accumulate information until it is transferred to the owner's capital account |
| balance sheet | a financial statement that reports assets, liabilities, and owner's equity on a specific date |
| worksheet | a columnar accounting form used to summarize the general ledger information needed to prepare financial statements |
| adjustments | changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period |
| post closing trial balance | a trial balance prepared after the closing entries are posted |
| income statement | a financial statement showing the revenue and expenses for a fiscal period |
| permanent accounts | accounts used to accumulate information from one fiscal period to the next |
| closing entries | journal entries used to prepare temporary accounts for a new fiscal period |
| accounting cycle | the series of accounting activities included in recording financial information for a fiscal period |
| component percentage | the percentage relationship between one financial statement item and the total that includes that item |
