Course Glossary
1. Course Glossary
Course Glossary
budget: a formal financial and operating plan for a business for a fiscal period
budget analysis: comparison of budgeted figures with actual figures
budgeted income statement: a projection of a business' anticipated revenue, expenses, and net income for a fiscal period
cash budget: a projection of a business' expected cash receipts and cash payments for a fiscal period
comparative income statement: an income statement that compares figures from two or more income statements
contra-asset account: means that it takes away from assets
income statement: a financial statement that lists the revenue, expenses, and net income or net loss over a fiscal period
income summary account: a temporary account that appears in the owner’s equity section of the company’s chart of accounts
The income summary account is used only for closing the accounts of the company.
operating budget: the same as a budgeted income statement
post-closing trial balance: the trial balance taken after the closing entries have been posted to the ledger
worksheet: an informal business paper used to organize and summarize data about the financial condition of a business