Accounting Chapter 9

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Terms in this set (...)

Accounting Cycle
The series of accounting activities included in recording financial information for a fiscal period
Adjusting Entries
journal entries recorded to update general ledger accounts at the end of a fiscal period
closing entries
journal entries used to prepare temporary accounts for a new fiscal period
permanent accounts
Accounts used to accumulate information from one fiscal period to the next
post-closing trial balance
A trial balance prepared after the closing entries are posted
temporary accounts
Accounts used to accumulate information until it is transferred to the owner's capital account.
Accounts Receivable, Assets, Capital
What appears on a post-closing trial balance?
Accounting Period Cycle
Which accounting concept applies when a work sheet is prepared at the end of each fiscal cycle to summarize the general ledger information needed to prepare financial statements?
Matching Expenses with Revenue
Which accounting concept applies when expenses are reported in the same fiscal period that they are used to produce revenue?
worksheet's adjustment columns
Information needed for journalizing the adjusting entries is obtained from the
the cost of the supplies on hand at the end of the fiscal period
After adjusting entries are posted, the supplies account balance will be equal to
credit balance
When revenue is greater than total expenses, resulting in a net income, the income summary account has a
Work sheet's Income Statement and Balance Sheet columns
Information needed for recording the closing entries is obtained from the
a temporary account
Income Summary is
shown on the balance sheet for the fiscal period
After the closing entries are posted, the owner's capital account balance should be the same as
general ledger accounts with balances after the closing entries are posted
The accounts listed on a post-closing trial balance are
Adequate Disclosure
Financial Statements re prepared from the information on the work sheet. What concept is this?
real accounts
Permanent accounts are also known as...
nominal accounts
Temporary accounts are also known as...
the asset and liability accounts and the owner's capital account
Permanent accounts also include:
revenue, expense, and owner's drawing accounts plus the income summary account
Temporary accounts include:
credit
When total expenses are less than revenue, there's a net income and the income summary account has a (blank) balance.
debit
When total expenses are greater than revenue, there's a net loss and the income summary account has a (blank) balance.
Income Statement; Balance Sheet; Work Sheet
Information needed to record the four closing entries is found in the (blank, blank) and (blank, blank) columns of the (blank).
Owner's capital
The drawing account balance is neither a revenue nor an expense account, so it is closed directly to the (blank, blank) account.