journal entries
This is the first step in the accounting cycle.
What is identifying and analyzing transactions?
These are made at the end of the period to update account balances.
What are adjusting entries?
This statement shows revenues and expenses.
What is the income statement?
Every journal entry must include these two sides.
What are debits and credits?
This type of account is adjusted to match supplies used during the period.
What is the Supplies account?
This statement reports assets, liabilities, and equity.
What is the balance sheet?
This type of account increases with a credit.
What is a revenue account?
This type of entry resets temporary accounts to zero.
What is a closing entry?
This statement shows how cash flows in and out of a company.
What is the statement of cash flows?
This type of journal records non-cash adjustments like depreciation.
What is the general journal?
This account is used temporarily to close revenue and expenses.
What is the Income Summary account?
Net income from this statement flows into retained earnings.
What is the income statement?
This process transfers journal entries to the ledger.
What is posting?
This principle requires adjusting entries for revenues earned but not yet recorded.
What is the revenue recognition principle?
This is the final output of the accounting cycle.
What are the financial statements?