Financial Statement Prep and Closing Entries Flashcards
a category of related accounts organized primarily into assets, expenses, liabilities, equity, or revenue (income) classifications
Account Classification
a financial statement that marks a company’s financial situation at a moment in time, showing all assets, liabilities and owners’ equity.
Balance Sheet
a summary-level report used to convey the financial position and performance of an organization within a specific time period.
Financial Statement
a financial statement that summarizes and organizes the inflows and outflows of cash for an organization over a specific accounting period also know as a statement of cash flows
Cash Flow Statement
A financial statement that summarizes the total revenues and expenses of an organization, and the resulting profit or loss over a specific accounting period , also known as the profit loss statement
Income statement
Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts
Closing Entries
A temporary owners equity account used to make slosing entries
Income Summary
Accounts that don’t get closed at the end of an accounting period, and where the cumulative balance of each account carries over from accounting period to accounting period
Permanent Accounts
Accounts that track activity over a single accounting period and get closed out to permanent accounts at the end of each accounting period
Temporary Accounts
a list of all permanent accounts that have a non zero balance, after all temporary account balances have been closed out to permanent accounts
Post Closing Trial Balance