Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Chapter 8
| Term | Definition |
|---|---|
| Permanent (Real) Accounts | Accounts used to accumulate info from one fiscal period to the next. |
| FYI – Accounts included in Permanent | Include Asset and Liability and owner's capital accounts. |
| Temporary (Nominal) Accounts | Accounts used to accumulate info until it is transferred to the owner's capital account. |
| FYI – Accounts included in Temporary | Revenue, expense, and owner's drawing accounts plus income summary account. |
| Closing Entries | Journal entries used to prepare temporary accounts for a new fiscal period. |
| FYI – Temporary Accounts start fiscal period | Start with with zero balances. |
| FYI -- Income Summary summarizes | The closing entries for the revenue and expense accounts. |
| FYI – 4 Closing Entries | 1.entry to close income statement accounts with credit balance. 2.Entry to close income statement accounts with debit balances. 3.Entry to record net income/net loss and close Income Summary. 4.Entry to close the owner's drawing account. |
| FYI – Closing Entries come from | found in the Income Statement and Balance Sheet columns of the worksheet. |
| FYI – Drawing Account is neither | A revenue nor an expense account. |
| FYI – Closing Entry for Drawing Account | The drawing account is closed directly to the owner's capital account. |
| FYI – Verify Capital Account’s new balance | by comparing the balance to the amount of capital shown on the balance sheet prepared at the of the fiscal period. |
| Post-Closing Trail Balance | A trial balance prepared after the closing entries are posted. |
| Accounting Cycle | The series of accounting activities included in recording financial info for a fiscal period. |
| FYI – 8 steps Accounting Cycle | 1Chk sourc doc in2 db and crd part.2record tran. in jrnl.3post 2the gen.ledgr.4prepar a wksht, from gen.ledgr.5jrnliz adjust entries and post .6prepar fin.statmnts from wksht.7jrnliz & post close entrie.8prepar a postclos trial bal. of the gen.ledgr |
Created by:
andrew.v
Popular Accounting sets