Accounting Records and Systems Transaction Analysis Flashcards
1
Q
What does left and right mean in a T-account?
A
Left is a debit record, wether right is a credit record. Actually the left and right side are commonly referred to as Debit side and Credit side too
2
Q
What are adjusting entries?
A
They are entries that are aimed at including events that are not yet included in the BS or to postpone events that are included in the BS but are referred to the next period
3
Q
What is the income summary?
A
It is an adjusting entry that summarizesthe revenue and expense transaction before closing the temporary accounts
4
Q
How does the closing process occur?
A
It is the transfer of the valance of each temporary account in the income summary
