| Term | Definition |
|---|
| trial balance | The first two columns of the work sheet |
| balance sheet or balance sheet section | The permanent general ledger accounts are extended to this part of the worksheet. |
| Net income | This results when revenue is larger than expenses. |
| net loss | This results when the total of the credit column of the income statement section is less than the debit column. |
| capital | Net income increases this account |
| heading | Answers the questions "who", "what" and "when" on a work sheet. |
| work sheet | The paper used to collect information from the general ledger accounts. |
| extending | Transferring balances from the trial balance section of a work sheet to either the income statement or balance sheet sections. |
| Matching principle | Allows a business to match revenue against expenses as a means of measuring profit for the period. |
Combine with other sets
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