| A | B |
|---|
| 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 |
| Income summary account | used to accumulate & summarize the closing entries for the revenue & expense accounts for a fiscal period. |
| 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 |
