Chap 6 - Closing the books - prt II

Accounts

100

To close an account with a debit balance, you would?

Credit the the account (do the "opposite" of the account balance)

Accounts

200

Which type of accounts ARE carried forward to the next accounting period?  (hint: Permanent accounts such as...)

ALOE (Assets, Liabilities, Owner's Equity)  For example, the Cash (an asset) in a company's bank account will be carried forward to the next accounting period.

Accounts

300

Which type of accounts are Not carried forward to the next accounting period? (hint the RED mnemonic)

Revenue, Expense, Drawing (RED) accounts

Workplace

400

In the workplace, accounting apps (such as Quickbooks, Sage, etc.)  allow users to set a "Close" date and to use a _____________ to protect against someone accidentally changing data in a closed accounting period.

Password

Ledger

500

What is the purpose of a Ledger?

To summarize an account and show the balance of a specific account.