| Question |
Answer |
| Adjusting entries |
Journal entries made at the end of an accounting period to adjust certain balances so that the statements will accurately reflect the transactions for the period. |
| Asset |
Goods owned by the business for the purpose of earning income. |
| Capital |
The difference between assests and liabilities. |
| Financial Periods |
The balance sheet of a business is prepared at a point in time, while the Income Statement is for a period ended on the date of the Balance Sheet. |
| Financal Statements |
Statements that record the assets, liabilities, capital, revenue, and expenses of a business enterprise. |
| Folio |
A term used to show which journal the entry originated from. |
| Journals |
Books of original entry where all original documents are first entered. |
| Ledgers |
Books such as General Ledger, A/R Ledger,A/P Ledger, & Payroll Ledger that record the details from verious journals. |
| Liability |
An Amount owed by a business |
| Net Income |
The total revnue less total expenses. |
| Trial Balance |
Recording ledger balances in debit and credit columns to determine that the tools are equal. |
Biology Lab Midterm
