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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 | A proof of 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 earned and expenses when incurred. |
| cash basis of accounting | Reporting income when the cash is recived and expenses when the cash is paid. |
| adjustments | Changes recorded on a worksheet 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. |
| adjusting entries | journal entries recorded to update general ledger accounts at the end of a fiscal period. |
