Defect life cycle
        
        when u get a new defect its named NEW
        Then team leader will check and named as OPEN
        If TL feels its a good bug then he sednds it to  
developer and named as ASSIGN
        If developer feels its not a bug named as REJECTED
        If developer feels it can be fixed in later 
versions named as DEFFERED
        If he feels its a bug and starts testing named as 
TEST
        If the test is complete then named as VERIFIED
        If the defect is not there then named as CLOSED
        again when testers test if its there then named as 
RE-OPENED





Test life cycle:

         Requirement study
         Test plan
         Test case generation
         Execution of test case
         Reporting of bugs
         Stop criteria if yes closed else retest.

kalpana adding to ur answer, Defect life cycle need not be 
the same in every company. Each company has different 
defect life cycles. In my org,
1. New defect raised - New
2. BA or Development manager ot Dev TL accpets and assigns 
to developer - Open
3. Deveoper fixed the defect - Fixed
4. Given to testing team to retest - Rolled
5. Fixed - Close
6. Defect still exists - Reopen.
7. When a new defect raised BA thins it is invalid - 
Rejected.
8. When a new defect raised BA thins it is invalid - 
Rejected
9. When a new defect cannot be fixed at that point of time -
 Deferred