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Accounting Terms
Following the Steps
Being Objective
Crazy Concepts
Closing Entries
100
Changes in financial information are reported for a specific period of time in the form of financial statements.
What is the accounting period cycle?
100
The first step in posting.
What is entering the date?
100
Used as evidence that the company paid cash.
What is a check stub?
100
The type of entry recorded when a correction needs to be made to a posting that has been journalized and posted.
What is a correcting entry?
100
The financial statement prepared after all closing entries are complete
What is the post closing trial balance?
200
Business transactions are reported in numbers that have common values- that is, using a common unit of measurement.
What is unit of measurement?
200
The second step in posting.
What is entering the journal page number in the "Post Ref" column?
200
Used as evidence that the company received cash.
What is a receipt?
200
An asset that is easily converted to cash.
What is a liquid asset?
200
The first transaction in the closing process closes what accounts in the income statement?
What are credits?
300
The revenue from business activities and the expenses associated with earning that revenue are recorded in the same accounting period.
What is matching expenses with revenue?
300
The thrid step in posting.
What is entering the debit or credit amount from the journal onto the debit or credit line of the ledger?
300
Used as evidence that the company received cash for a sale.
What is a calculator tape?
300
Shows in one place all of the changes in a single account.
What is a ledger account?
300
These second transaction in the closing process closes these accounts.
What are income statement debits?
400
Revenue is recorded at the time goods or services are sold
What is realization of revenue?
400
The fourth step in posting.
What is calculating and entering the new account balance?
400
Used as evidence that the company purchased supplies or needs to have a correcting entry made.
What is a memorandum?
400
How accounting personnel know where to resume posting if it is interrupted.
What is they go to the last completed post ref in the general journal and start at the next line?
400
These two accounts are used in the third closing entry in the general journal.
What are income summary and the owner's capital account?
500
Financial information is recorded and reported seperately from the owner's personal financial information.
What is business entity?
500
The fifth and final step in posting.
What is returning to the journal and entering the account number in the "Post Ref" column?
500
Used as evidence that the company sold goods on account.
What is a sales invoice?
500
The procedure to follow to prove cash.
What is comparing the balance in the checkbook to the balance in the cash ledger account?
500
After closing this account, the closing process is complete, and Owner's equity is known.
What is the Owner's drawing account?