Unit 8

Question 1

permanent accounts

Answer 1

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

Question 2

temporary accounts

Answer 2

Accounts used to accumulate information until it is 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.

Question 6

audit

Answer 6

An examination of financial records, accounts, and supporting documents to check their accuracy

Question 7

auditor

Answer 7

The accountant who conducts the audit.

Question 8

audit trail

Answer 8

A paper or electronic path that provides a documented history of a transaction.

Question 9

public accounting firm

Answer 9

An accounting business that helps other businesses with accounting issues.