Financial Statements
Adjusting/Closing Entries
Posting
The accounting cycle
Accounting Vocaulary
100
What are the two types of financial statements?
income statement and balance sheet
100
What is an adjusting entry?
Journal entries recorded to update general ledger accounts at the end of a fiscal period.
100
What is a post closing trial balance?
a trial balance prepared after the closing entries are posted
100
What is an accounting cycle?
The series of accounting activities included in recording financial information for a fiscal period
100
What is a temporary account?
Accounts used to accumulate information until it is transferred to the owners capital account
200
What do financial statements report?
financial info over a specific period of time
200
Where are the entries entered?
General Debit and Credit columns
200
What accounts are included on a post-trial balance?
general ledger accounts
200
What is step 4?
prepare worksheet
200
What is a permanent accout?
Accounts used to accumulate information from one fiscal period to the next
300
Where would one go to obtain information concering financial statements?
General ledger accounts
300
Entries must be recorded in a journals and record in a ____________
general ledger account
300
Do permanent accounts appear on a post-closing trial balance?
Yes they do.
300
What is step 8
Preparing Post-Closing trial Balance
300
What is component percentage?
the percentage relationship between one financial statment item and the total that includes that item
400
What are the four sections for a financial statemetn for a service business?
Heading, revenue, expenses and net income/loss
400
What is a closing entry?
Journal entries used to prepare temporary accounts for a new fiscal period
400
What must equal each other in a post-closing trial balance?
debits and credits
400
What is the 1st step?
Analyze transactions
400
What is a post-closing trial balance?
A trial balance prepared after the closing entries
500
What are the two components that revenue reports on an incom statement?
total expenses and net income
500
Temporary accounts balanced must be ___________
reduced to zero
500
What does a post-closing trial balance verify?
that debits equal credits
500
What is the 6th step?
Journalize Adjusting and Closing Entries
500
What is a closing entry?
journal entries used to prepare temporary accounts for a new fiscal period
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