Chapter 5 Vocab

The period of time over which the earnings of a business are measured.

A list of the accounts of a business and their numbers, arranged according to their order in the ledger.

A decrease in owner's equity resulting from a personal withdrawal of funds or other assets by the owner.

A decrease in equity resulting from the costs of the materials and services used to produce the revenue.

A financial statement that summarizes the items of revenue and expense, and shows the net income or net loss of a business, for a given fiscal period.

Each expense item related to revenue earned must be recorded in the same accounting period as the revenue it helped to earn.

The difference between total revenues and total expenses if the revenues are greater than the expenses.

The difference between total revenues and total expenses if the expenses are greater than the revenues.

An increase in equity resulting from the proceeds of the sale of goods or services.

Revenue be recorded in the accounts at the time the transaction is completed.

Accounting takes place over specific time periods known as fiscal periods.