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Chapter 8
Key Terms
Term | Definition |
---|---|
matching principle | principle requiring that the expenses incurred in an accounting period are matched with revenue earned in the same period |
net income | amount by which total revenue exceeds total expenses in an accounting period |
net loss | amount by which total expense exceed total revenue in an accounting period |
ruling | drawing a line; a single rule (line) drawn under under a column of figure indicating that entries above are to be added or subtracted. If amount is a total and no further processing is needed, a double rule is drawn underneath |
worksheet | working paper used to collect information from the ledger accounts for use in completing end-of-period activities |