| 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 |
| closing entries | journal entires 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 |
| accounting period cycle | changes in financial information are reported for a specific period of time in the form of financial statements |
| adequate disclosure | financial statements contain all information necessary to understand a business's financial condition |
| matching expenses with revenue | expenses incurred to earn revenue are reported in the same fiscal period as the revenue is earned and reported |
