| A | B |
|---|
| Closing Entries | journal entries made to close, or reduce to zero the balances in temporary capital accounts and to transfer net income or loss to the capital account. |
| Income Summary account | an acccount used to accumulate and summarize the revenue and expenses for the period. |
| Compound entry | A journal entry with two or more debits or two more credits. |
| Post-closing trial balance | A list of the permanent general ledger account balances; it is prepared to prove the ledger after the closing entries are posted |
| Temporary Capital Accounts | accounts that start the accounting period with zero balances. |
| Permanent Accounts | Balances are carried forward to the next period; accounts are continuous from one period to the next. |
| Journalizing and Posting Closing Entries | The eighth step in the accounting cycle. |
| Prepare a Post Closing Trial Balance | The ninth step in the accounting cycle |
