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Chapter 4 Vocabulary
Completing the Accounting Cycle
Term | Definition |
---|---|
Accounting Cycle | The process by which companies produce their financial statements for a specific period |
Classified Balance Sheet | A balance sheet that places each asset and each liability into a specific category |
Closing Entries | Entries that transfer the revenues, expenses, and Owner, Withdrawals balances to the Owner, Capital account to prepare the company's books for the next period |
Closing process | A step in the accounting Cycle that occurs at the end of the period. The closing process consists of journalizing and posting |