Worksheet.

A working paper which is used as a tool by the accountant but does not form part of the
permanent accounting record.
- a columnar working paper which will show all the accounts together with their
adjusted amounts that will appear in the financial statements.

Financial Statement. The end product of the accounting process in which accounting information is
communicated to interested party.
- These statements are the means of communication between the business and all
interested parties.
Accounting Period - is the period at the end of which financial statements are prepared.
- The accounting period covers one year because it jibes with the payment of income tax
which is annually.
The annual accounting Period can be classified into:
Calendar year- A 12-month period which ends December 31
Fiscal Year – Any 12-month period which does not end December 31

Income Statement. The results of business operations for a period of time. Also called profit and loss
statement.
- All the accounts appearing in this are called nominal accounts in the sense that they
are merely temporary accounts and are not carried forward from period to period.

Net income. The excess amount if the total revenues exceeded the total expenses

Net loss. The excess amount if the total expenses exceeded the total revenues

Balance Sheet. Shows the resources employed by the business and the sources from which these were
acquired.
- All accounts appearing in this statement are called real account in the sense that they
are more or less permanent in nature and their balances are carried forward from
period to period.
Double rule. The procedure made by an accountant to show the final amount in every computation.

Simplified Accounting
By Nelson S. Abeleda Pp. 54, 65, 70-71