Key Terms
The key terms used in the section are listed below:
- Worksheet: A worksheet records all business transactions and is used to prepare the financial statement of a business organization.
- Ruling: Ruling means drawing a line after recording all the ledger accounts in the trial balance.
- Trial Balance: The trial balance can be prepared at the end of the accounting period, or whenever required.
- Net Income: Net income is the amount of revenue that remains after the expenses for the same period are deducted.
- Balance Sheet: The balance sheet contains a list of assets, liabilities, and owner’s equity accounts.