| 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 another |
| Temporary accounts | Accounts used to accumulate information until it is transferred to the owner’s capital account |
| Income summary accounts | A temporary account used to accumulate and summarize the closing entries for the revenue and expense accounts for a fiscal period |
| Closing entries | Journal entries that prepare temporary accounts for a new fiscal period |
| Post-closing trial balance | The accounting form prepared to ensure that debits equal credits after closing entries are posted Lists only those accounts that have a balance |
| Accounting cycle | The series of accounting activities included in recording financial information for a fiscal period |
| Component Percentage | The percentage relationship between one financial statement item and the total that includes that item. |
