Closing Entries Flashcards
0
Q
Permanent Accounts
A
Accumulative effect transactions over entire business life
- Balance Sheet accounts (Assets, Liabilities, Contributed Capital & RE)
1
Q
Temporary Accounts
A
Accumulative effect transactions for period of time only.
- Revenue & expense accounts
- Closed out to Retained Earnings @ end of period
2
Q
Post-closing trial balance
A
Summarizes balances of permanent accounts after closing entries
- All revenue & expense accounts have 0 balance
3
Q
Closing Entries
A
Internal transactions that “zero out” temporary accounts
4
Q
After done Post-closing trial balance, ready to start____
A
The next fiscal period
