Unit 8 Flashcards
Accounts used to accumulate information from one fiscal period to the next
permanent accounts
Accounts used to accumulate information until it is transferred to the owner’s capital account
Temporary accounts
Journal entries used to prepare temporary accounts for a new fiscal period.
closing entries
A trial balance prepared after the closing entries are posted
post-closing trial balance
The series of accounting activities included in recording financial information for a fiscal period
accounting cycle
Which accounting concept applies when a work sheet is prepared at the end of each fiscal cycle to summarize the general ledger information needed to prepare financial statements?
Accounting Period Cycle
The ending account balances of permanent accounts for one fiscal period are?
The beginning account balances for the next fiscal period
Which of the following accounts is a temporary account?
-Cash
-Accounts payable
-Clyde Sullivan, capital
-Rent expense
Rent Expense
Which accounting Concept applies when expenses are reported in the same fiscal period that they are used to produce revenue.
Matching Expense
When revenue is greater than total expenses, resulting in a net income, the Income Summary account has a
Credit balance
Information needed for recording the closing entries is obtained from the…?
Income Worksheet Statement and balance sheet columns
Income summary is a/n?…
a temporary account
After closing entries are posted, the sales account balance should be
zero
After closing entries are posted, the owner’s capital account balances should be the same as shown on the…
balance sheet for the fiscal period
The accounts listed on a post-closing trial balance are..
general ledger accounts with balances after the closing entries are posted.
