| A | B |
|---|
| Accounting Cycle | The series of accounting activities included in recording financial information for a fiscal period |
| Adjusting Entries | Journal entries recorded to update general ledger accounts at the end of the fiscal period |
| Closing Entries | Journal entries that prepare temporary accounts for a new fiscal period |
| Income Summary Accounts | A temporary account used to accumulate and summarize the closing entries for the revenue and expense accounts for a fiscal period |
| Permanent Accounts | Accounts used to accumulate information from one fiscal period to another |
| 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 |
| Temporary Accounts | Accounts used to accumulate information until it is transferred to the owner’s capital account |
| Accounting Equation | Assets= Liabilities + Owner's Equity |
