Accounting -Completing the worksheet

• Accounting
• Secondary Education

What is the difference between income and expenses called?

Chapter 8.2

Completing the Worksheet

Pages 204-210

Objectives

Describe the matching principle

Analyze the showing of net income on the worksheet

Prepare the worksheet

The matching Principle requires matching expenses incurred in an accounting period with the revenue earned in the same

period.

Give an example of a matching principle and its use by the managers

The matching of expenses incurred in an accounting period with the revenue earned in the same period.

1. Matching Incomes
2. Matching Expenses
3. Matching Principle
4. Matching Net Profit

Net income is the amount of revenue that remains after expenses for the period have been subtracted. Net income is entered as a debit at the bottom of the Income Statement section of the work sheet.

Find out how you can find the net income in the given worksheet.

Why is net income entered in the
Income Statement section Debit column
and the Balance Sheet section Credit
column?

Answer

to double-check the accuracy of the net income calculation

Give the steps of calculating the net income in a given worksheet.

Review the
first line in Figure 8-9. Ask: What does
this line say in your own words?

Answer

Revenue that is higher than expenses results in net income, which causes the capital account to increase.

Video on preparing a worksheet.

https://s3.amazonaws.com/connect-nonprod.mheducation.com/Media/Demo/hssl/accounting_tutorials/show_me/Batch_1/ch8_1/index.html

Prepare a six-column Worksheet using problem 8-4 on page 215

Show working in a word document.

Explain how to record net income on the worksheet.

Give the main points of the lesson.