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16 Cards in this Set
- Front
- Back
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Net Income
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The amount by which totala revenue exceeds total expenses for the accounting period.
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Balance Sheet
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A report of the balances in the permanent accounts on a specific date.
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Financial Statements
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Reports prpared to summarize the changes resulting from business transactions that ocur during an accounting period.
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Balance Sheet Section
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Lists all the permanent accounts
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Checking Account
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An account that allows a person or business to deposit cash in a band and then write checks and make ATM withfrawals and ourchases against the account balance.
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Income Summary
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The general ledger account used to summarize the revenue and expenses for the period
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Closing Entries
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Journal entries made to close, or reduce to zero, the balances in the temporary accounts and to transfer the net income or net loss for the period to the capital account.
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Compound Entry
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A journal entry with two or more debits or two or more credits
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Ratio Analysis
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The process of evaluating the relationship between various amounts in the finacial statements
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Income Statement
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A report ot the net income or net loss for a specific period
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Statement of Changes in Owner's Equity
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A financial statement that summarizes changes in the owner's capital account as a result of business transactions during the period.
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Matching Principle
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Principle requiring that thge expenses incurred in an accounting period are matched with revenue earned in the same period.
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Net Loss
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The amount by which total expenses exceed total revenue for the accouting period
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Post-Closing Trial Balance
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A list of the permanent general ledger account balanes; it is prepared to prove the ledger afte rthe clising entries are posted
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Ruling
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Drawing a single line under a column of figures indication that the entries above the rules are to be added or subtracted.
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Return On Sales
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A ratio that examines the portion of each sales dollar that represents profit; calculated by dividing net income by sales.
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