| A | B |
|---|
| Temporary Accounts | Closing Entries are required for |
| The Post-Closing Trial Balance | Permanent Accounts balances are reported in this final step |
| Income Summary | The temporary account used to close revenue and expenses |
| Permanent Accounts | Carry balances to the next accounting period |
| Cash is classified as | Permanent |
| Revenue is classified as | Temporary |
| The first step in closing | Close Revenue to Income Summary |
| The second step in closing | Close Expenses to Income Summary |
| The third step in closing | Close Income Summary to Capital |
| The fourth step in closing | Close Withdrawals to Capital |
