Chapter 8 Flashcards
1
Q
what is a worksheet
A
a working paper used to collect information from the ledger accounts for use in completing end-of-period activities
2
Q
what is ruling
A
- drawing a line; a single rule (line) under a column of figures indicates that the entries above the rule are to be added or subtracted
- if an amount is a total and no further processing is needed, a double rule is drawn under it
3
Q
what is matching principle
A
principle requiring that the expenses incurred in accounting period are matched with revenue earned in the same period
4
Q
what is net loss
A
the amount by which total expenses exceed total revenues for the accounting period
5
Q
what is net profit
A
when your revenues are greater than your expenses
6
Q
what are the five parts of a worksheet
A
- three heading line: who what when
- account name
- trial balance
- income statement
- balance sheet
7
Q
what is the difference between a balance sheet and an income statement
A
BALANCE SHEET: assets, liabilities, and owner’s equity
INCOME STATEMENT: revenues and expense