Chapter 8

Question 0

Permanent accounts

Answer 0

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

Question 1

Adjusting entries

Answer 1

Journal entries recorded to update general ledger accounts at the end of a fiscal period

Question 2

Temporary accounts

Answer 2

Accounts used to accumulate until it can be transferred to the owner’s capital account

Question 3

Closing entries

Answer 3

Journal entries used to prepare 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

The series of accounting activities included in recording financial information for a fiscal period