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Vocabulary ch 8
Chapter 8
| Question | Answer |
|---|---|
| Work Sheet | A working paper used to collect information from the ledger accounts in one place. |
| Ruling | “Drawing a line” by drawing a single line under a column of amounts means that the entries above are ready to be totaled, once there is a double line that means that after all of the other math work is done, that is the final total. |
| Matching Principle | it requires matching expenses incurred in an accounting period with the revenue earned in the same period. |
| Net income | The amount of Revenue that remains after expenses for the period have been subtracted. |
| net loss | When the total of expenses are more then total revenue. |