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Chapter 8
word and definitions
Term | Definition |
---|---|
Adjusting Entries | Journal entries recorded to update general ledger accounts at the end of a fiscal period |
Permanent Accounts | Accounts used to accumulate information from one fiscal period to the next |
Closing entries | Journal entries used to prepare temporary accounts for a new fiscal period |
Temporary Accounts | Accounts used to accumulate information until it is transferred to the owners capital account |
Post-Closing trial balance | A trial balance prepared after the closing entries are posted |
Accounting Cycle | The series of accounting activities included in recording financial information for a fiscal period |