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Chapter 3

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Revenue, expense, and dividend accounts; balances brought to zero in the closing process   Temporary Accounts  
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Right side of an account   Credit  
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The process of "zeroing" out the temporary revenue, expense, and dividend accounts to prepare the accounting records for the next accounting period   Closing the Accounts  
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List of all accounts with respective debit or credit balances   Trial Balance  
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List of accounts with respective debit or credit balances prepared after adjustments have been made; can be used to prepare financial statements   Adjusted Trial Balance  
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Left side of an account   Debit  
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List of accounts with respective debit or credit balances prepared after temporary accounts have been closed; only balance sheet accounts appear on a post-closing trial balance   Post-Closing Trial Balance  
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The book of original record; business transactions are first recorded here in chronological order and later posted to the general ledger   Journal  
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Accounts that are never closed; balance sheet accounts e.g., assets; liabilities; stockholders' equity   Permanent Accounts  
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The process of recording transactions, producing the financial statements, and preparing the accounting records for the net accounting period   Accounting Cycle  
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An accountant's traditional way of keeping track of a company's financial transactions and preparing the financial statements; debits and credit in this system provide a simple means to track financial transactions   General Ledger System  
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