| A | B |
|---|
| adjusting entries | journal entries recorded to update general ledger accounts at the end of the 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 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 |
| matching expenses with revenue concept | same as the procedure that prepares the temporary accounts for recording information about the next fiscal period. |
| income summary | a temporary account used to summarize the closing entries for the revenue and expense accounts |
