CH8 Recording Closing Entries In Preparing A Post Closing Trial Balance For A Service Business

Question 1

Permanent accounts

Answer 1

Accounts used to accumulate information from one physical period to the next

Question 2

Temporary accounting

Answer 2

Accounts used to accumulate information until it is transferred to owners capital account

Question 3

Closing entries

Answer 3

Journal entries used to repair temporary accounts for a new fiscal period

Question 4

Post closing trial balance

Answer 4

A trial balance prepared after the closing entries are posted

Question 5

Accounting cycle

Answer 5

-Analyze transactions
-Journalize
-Post in general ledger
-prepare a worksheet
-Journalize and post adjusted entries in general ledger
-prepare a financial statement
Income statement / balance sheet
-journalize and post closing entries
-Prepare post closing trial balance