| A | B |
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| fiscal period | The length of time for which a business summarizes and reports financial information. |
| Going Concern | Financial statements are prepared with the expectation that a business will remain in operation indefinitely. |
| trial balance | A proof of equality of debits and credits in a general ledger. |
| adjustments | Changes recorded on a worksheet to update a 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. |
| Consistent Reporting | The same accounting procedures are followed in the same way for each accounting period. |
| Accounting Period Cycle | Changes in financial information are reported for a specific period of time in the form of financial statements. |
| Matching Expenses with Revenue | Revenue from business activities and expenses associated with earning that revenue are recorded in the same fiscal period. |
| stakeholders | Any persons or groups who will be affected by an action. |
| component percentage | The percentage relationship between one financial statement item and the total that includes that item. |
| Adequate Disclosure | Financial statements contain all the information necessary to understand a business’ financial condition. |
| work sheet | A columnar accounting form used to summarize the general ledger information needed to prepare financial statements. |
