Term
| Adjusting journal entries |
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Definition
| journal entries that are needed in order to update specific ledger accounts to reflect correct balances at the end of an accouting period |
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Term
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Definition
| journal entries that are prepared to (a) reduce or clear all temporary accounts to a zero balance or (b) update Capital to a new balance |
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Term
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Definition
| a temporary account in the ledger that summerizes revenue and expenses and transfers the balance (net income or net loss) to Capital this account does not have a normal balance |
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Term
| Permanent accounts (real) |
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Definition
| accounts whose balances are carried over to the next accounting period |
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Term
| Post-closing trial balance |
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Definition
| the final step in the accounting cycle that lists only permanent accounts in the ledger and their balances after adjusting and closing entries have been posted |
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Term
| Temporary accounts (nominal) |
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Definition
| accounts whose balances at the end of an accounting period are not carried over to the next accounting period |
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