Matthew Joshua L.

Sosito
Assignment in TLE
Grade 10-A

Trial Balance
Short Definition:
A statement of all debits and credits
in a double-entry account book, with
any disagreement indicating an
error.
Long Definition:
The aggregate of all debit and credit
balances at the end of an
accounting period that (1) shows if
the general ledger is in balance
(total debits equal total credits) before making closing entries, (2) serves as a
worksheet for making closing entries, and (3) provides the basis for making draft
financial statements.

Balance Sheet

Among other

Short Definition:
A statement of the assets, liabilities, and
capital of a business or other
organization at a particular point in time,
detailing the balance of income and
expenditure over the preceding period.
Long Definition:
A condensed statement that shows the
financial position of an entity on a
specified date (usually the last day of an
accounting period).
items of information, a balance sheet states
(1) what assets the entity owns, (2) how it paid for
them, (3) what it owes (its liabilities),
and (4) what is the amount left after
satisfying the liabilities. Balance sheet
data is based on a fundamental
accounting equation (assets = liabilities
+ owners' equity), and is classified under
subheadings such as current assets,
fixed assets, current liabilities, Longterm Liabilities.

With income statement and cash flow statement, it comprises the set of
documents indispensable in running a business. An audited balance sheet is
often demanded by investors, lenders, suppliers, and taxation authorities; and is

usually required by law. To be considered valid, a balance sheet must give a true
and fair view of an organization's state of affairs, and must follow the provisions
of GAAP in its preparation. Also called statement of condition, statement of
financial condition, or statement of financial position.

Income Statement
Short Definition:
A financial statement that measures a
company's financial performance over a
specific accounting period. Financial
performance is assessed by giving a
summary of how the business incurs its
revenues and expenses through both
operating and non-operating activities.
Long Definition:
A summary of a management's
performance as reflected in the
profitability (or lack of it) of an
organization over a certain period. It
itemizes the revenues and expenses of
past that led to the current profit or loss,
and indicates what may be done to
improve the results.
In contrast to a balance sheet, an
income statement depicts what
happened over a month, quarter, or
year. It is based on a fundamental
accounting equation (Income = Revenue - Expenses) and shows the rate at
which the owners equity is changing for better or worse.
Along with balance sheet and cash flow statement it forms the basic set of
financial information required to manage an organization. Also called earnings
report, operating statement, or profit and loss account.

Ledger
Short Definition:
A book or other collection of
financial accounts
Long Definition:
Collection of an entire group of
similar accounts in double-entry
bookkeeping. Also called book of
final entry, a ledger records
classified and summarized
financial information from journals (the 'books of first entry') as debits and
credits, and shows their current balances. In manual accounting systems, a
ledger is usually a loose leaf binder with a separate page for each ledger
account. In computerized systems, it consists of interlinked digital files, but
follows the same accounting principles as the manual system.

Journal
Short

Definition:
A record of financial transactions in order by date.
A journal is often defined as the book of original
entry.
Long Definition:
Business diary in which all financial data (taken
usually from a journal voucher) pertaining to the
day to day business transactions of a firm is recorded
using double-entry bookkeeping system. Debit and credit changes caused by
each transaction in individual ledger-accounts are subsequently entered in
(posted to) the firm's general ledger. Depending on the nature of its operations
and number of daily transactions, a firm may keep several types of specialized
journals such as cash journal (cash book), purchases journal, and sales journal.
The most common is general journal, used where no special journal exists or in
which transactions not belonging to
other journals are entered (see
journal entry). Journals are also
called 'books of first entry' or 'books
of original entry.'