Acct. Chapter 8

matching principle

The ____ allows a business to match revenue against expenses as a means of measuring profit for the period.

capital

The amount of net income for the period is added to the Balance Sheet credit total because it increases the balance in the ____ account.

net income

A(n) ____ results when revenue is larger than expenses.

net loss

If the total of the credit column of the Income Statement section is less than the debit column, there is a(n) ____ for the period.

trial balance

The first two columns on the work sheet are used to enter the ____.

heading

The ____ of the work sheet answers the questions "who?", "what?", and "when?".

work sheet

A(n) ____ is a paper used to collect information from the general ledger accounts.

extending

____ is transferring balances from the Trial Balance section of the work sheet to either the Balance Sheet section or the Income Statement section.

Income Statement section

Revenue and expense accounts are listed in the Trial Balance section of the work sheet and in the ____ of the work sheet.

Balance Sheet section

The asset, liability, and owner's equity accounts are extended to the ____ of the work sheet.

ruling

____ means drawing a line under a column of amounts.

debit

If there is a net loss for the period, it is entered in the ____ column of the Balance Sheet section of the work sheet.

credit

A net loss is entered in the ____ column of the Income Statement section of the work sheet.