| A | B |
|---|
| fiscal period | the length of time for which a business summarizes and reports financial information |
| 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 |
| adjustments | changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period |
| 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 is greater |
| consistent reporting | the same accounting procedures are followed in the same way in 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 accounting period |
| component percentage | the percentage relationship between one financial statement and item and the total that includes that item |
