| A | B |
|---|
| component percentage | The percentage relationship between one financial statement item and the total that includes that item. |
| 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. |
| 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. |
| adequate disclosure | Financial statements conain all information necessary to understand a business' financial condition. |
