Completed Accounting Cycle Flashcards
1
Q
temporary/nominal accounts
A
accounts wich have to be closed at the end of the Accounting period e.g. Revenue, dividends and expenses
2
Q
related/permanent accounts
A
accounts wich have not set to be zero
3
Q
Closing entries
A
formally recognize the Transfer of net income and dividends to retained earnings. are only made at the end of the annual Accounting period
4
Q
post-Closing Trial balance
A
xx
5
Q
Accounting cycle
A
- analyze business transactions
- journalize transactions
- post to ledger accounts
- prepare trial balance
- journalize and post adjusting entries
- prepare adjusted trial balance
- prepare financial statements
- journalize and post closing entries
- prepare a post-closing trial balance
6
Q
correcting entry
A
xx
7
Q
reversing entry
A
reverse an incorrect entry and then prepare the correct one
