Terms
What is post-closing trial balance
To close out Revenue, identify which account would be debited, and which account would be credited.
What is Sales (debit) and Income Summary (credit)?
The accounts that appear on the post-closing trial balance.
What are assets, liabilities, and owner's capital?
Identify which step in the Accounting Cycle this is -
-Source Documents are checked for accuracy and transactions are analyzed into debit and credit parts.
Identify 2 accounts that would be listed on a post-closing trial balance.
Definition - The series of accounting activities included in recording financial information for a fiscal period.
What is accounting cycle
To close out the account Miscellaneous Expense, identify which account would be debited, and which account would be credited.
What is Income Summary (debit) and Miscellaneous Expense (credit)?
Accounts used to accumulate information from one fiscal period to the next.
What are permanent accounts?
Identify which step in the Accounting Cycle this is -
Journal Entries are posted to the general ledger.
What is Step 3
When preparing a post-closing trial balance, identify the first step.
What is preparing the heading.
Definition - Journal entries used to prepare temporary accounts for a new fiscal period.
What are closing entries.
To close out the account the owner's drawing account, identify which account would be debited, and which account would be credited.
What is Owner's Capital Account (debit) and Owner's Drawing Account (credit)?
Identify a temporary account.
What is an Expense, Revenue, Drawing, or Income Summary Account
Identify which step in the Accounting Cycle this is -
Adjusting Entries are journalized and posted to the general ledger.
What is step 5
On a post-closing trial balance, which classification of accounts would carry a credit balance?
What are the liability and owner's capital accounts.
Definition - Accounts used to accumulate information from one fiscal period to the next.
Permanent Accounts
If there is a Net Income, identify which account gets the debit, and which account gets the credit.
What is Income Summary (debit) and Owner's Capital (credit)?
What is Matching Expenses with Revenue
Identify which step in the Accounting Cycle this is -
A worksheet, including a trial balance, is prepared from the general ledger.
What is Step 4.
Debits and credits listed in the post-closing trial balance should be this.
Definition: Accounts used to accumulate information until it is transferred to the owner's capital account.
Temporary Accounts
If there is a Net Loss, identify the debit and the credit.
What is Owner's Capital (debit) and Income Summary (credit)?
This is the closing entry for a net loss.
Name the debit and credit.
What is a debit to Capital and a credit to Income Summary?
Identify which step in the Accounting Cycle this is-
Closing entries are journalized and posted to the general ledger?
What is step 7.
On the post-closing trial balance, what word is written below the owner's capital account title?
What is Totals?