Chapter 10 Vocab

Question 1

Journal entries made to close, or reduce to zero, the balances in the temporary accounts and to transfer the net income or net loss for the period to the capital account

Answer 1

Closing entries

Question 2

Prepared to make sure total debits equal total credits after the closing entries are posted. The general ledger account used to summarize the revenue and expenses for the period

Answer 2

Income summary account

Question 3

A journal entry with 2 or more debits or 2 or more credits

Answer 3

Compound entry

Question 4

A list of the permanent general ledger account balances; it is prepared to prove the ledger after the closing entries are posted

Answer 4

Post-closing trial balance