Lesson Three: Definitions Flashcards
1
Q
Accounting Cycle:
A
The steps in preparing financial statements.
- Analyze transactions
- Journalize
- Post
- Prepare unadjusted trial balance
- Adjust and post accounts
- Prepare adjusted trial balance
- Prepare financial statements
- Close accounts
- Prepare post-closing trial balance
2
Q
Accounting Period:
A
The regular intervals a company chooses to create and use financial statements.
3
Q
Annual Financial Statements:
A
Reports covering a one-year period for a company’s fiscal situation.
4
Q
Interim Financial Statements
A
These cover one, three, or six months of activity.
