What is the term for journal entries made to close, or reduce to zero, the balance in temporary accounts and to transfer the net income/loss for the period to the capital account?
closing entries
100
Which accounts are involved in closing journal entries?
temporary accounts
100
Is revenue debited or credited when the balance is closed?
Debited
100
What step # is preparing the post closing trial balance?
9
100
What is the accounting equation?
Assets = Liabilities + Owner's Equity
200
What account is used to accumulate and summarize the revenue and expenses for the period?
Income Summary account
200
Which accounts are closed directly to income summary?
Revenue & expenses
200
Are expense accounts debited or credited when closed?
Credited
200
Which type of accounts are listed on the post closing trial balance?
permanent
200
Name the "Big Four" accounting firms (in alphabetical order)
Ernst & Young, Deloitte, KPMG, PWC
300
What is the term for a journal entry with two or more debits or two or more credits?
compound entry
300
Which accounts are closed directly to capital?
Income Summary & Withdrawals
300
What is written in the description when posting closing entries?
Closing entry
300
How is the date formatted on the post closing trial balance?
Month, day, year
**Not for the month ended
300
If revenue is less than expenses, was there a net income or net loss for the period?
Net loss
400
What is the last step in the accounting cycle?
Prepare a post closing trial balance
400
In what order are the temporary accounts closed?
Revenue, expenses, income summary, withdrawals
400
What does the balance, before it is closed, in the Income Summary account represent?
Net income or net loss for the period
400
What is the purpose of the post closing trial balance?
to make sure debits and credits are equal
400
What accounts are listed on the Balance Sheet?
Assets, Liabilities, and Owner's Equity
500
What is prepared to make sure total debits equal total credits after the closing entries are posted?
Post closing trial balance
500
When closing Income Summary to capital, is capital debited or credited?
It depends on in there is a net income or net loss for the period
500
When closing the Income Summary account, if there was a net loss for the period, is the account debited or credited to close it?
Debited
500
What do you do if the debits and credits are not equal?
Go back and check for errors
500
Describe the difference in a bullish and bearish market.
Bullish - markets are doing and expected to do well
Bearish - markets are not doing and are not expected to do well