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| fiscal period | The length of time for which a business summarizes its financial information and reports its financial performance |
| fiscal year | A fiscal period consisting of 12 consecutive months |
| work sheet | A columnar accounting form used to summarize the general ledger information needed to prepare financial statements. |
| trial balance | The total of all debit account balances must equal the total of all credit account balances and this accounting form is used to prove the equality of debits and credits in a general ledger. |
| prepaid expense | Cash paid for an expense in one fiscal period that is not used until a later period |
| accrual basis of accounting | Reporting income when it is earned and expenses when they are incurred |
| cash basis of accounting | Reporting income when the cash is received and expenses when the cash is paid |
| 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 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 is greater |
| adjusting entries | Journal entries recorded to update general ledger accounts at the end of a fiscal period |
| Consistent Reporting | An accounting concept applied when the same accounting procedures are followed in the same way in each accounting period |
| Matching Expenses with Revenue | An accounting concept applied when amounts that helped earn revenue for a period must be reported as expenses in the same period |
| Materiality | An accounting concept applied when business activities creating dollar amounts large enough to affect business decisions should be recorded and reported as separate items in the accouning records and financial statements. |
| Unit of Measurement | An accounting concept requiring that business transactions be reported in numbers that have common values--that is, using a common unit, for example, U.S. dollars |
| Accounting Period Cycle | An accounting concept applied when changes in financial information are reported for a specific period of time in the form of financial statements |
| Exchange Rate | The value of one currency for the purpose of conversion to another |
| AICPA | American Institute of Certified Public Accountants |
| NASDAQ | created by the National Association of Securities Dealers (NASD) to enable investors to trade securities on a computerized, speedy and transparent system, and commenced operations on February 8, 1971 |
