accounting unit 8 vocabulary

recording closing entries and preparing a post-closing trial balance for a service business

permanent accounts

Accounts used to accumulate information from one fiscal period to the next.

temporary accounts

Accounts used to accumulate information until it is transferred to the owner’s capital account.

closing entries

Journal entries used to prepare temporary accounts for a new fiscal period.

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.