Accounting Chapter 8 Study Guide and Vocab – Flashcards
Unlock all answers in this set
Unlock answersquestion
Permanent Accounts (Real)
answer
Used to accumulate information from one fiscal period to the next. (p.214)
question
Temporary Accounts (Nominal)
answer
Used to accumulate information until it is transferred to the owner's capital account. (p.214)
question
Closing Entries
answer
Journal procedures used to prepare temporary accounts for a new fiscal period. (p.214)
question
Post-Closing Trial Balance `
answer
Prepared after the closing entries are posted. (Balance) (p.227)
question
Accounting Cycle
answer
The series of accounting activities included in recording financial information for a fiscal period. (p.228)
question
The Closing Entry for Sales
answer
Debit: Sales Credit Income Summary (p.217)
question
The Closing Entry for All Expense Accounts
answer
Debit: Income Summary Credit: All Expense Accounts (p.219)
question
The Closing Entry for Income Summary with a Net Income
answer
Debit: Income Summary with Net Income Amount Credit: Capital Account (p.220)
question
The Closing Entry for Income Summary with a Net Loss
answer
Debit: Loss to Capital Account Credit: Income Summary (p.220)
question
The Closing Entry for Owner's Drawing Account
answer
Debit: Capital Credit: Drawing (p.221)
question
The accounting concept that applies when a worksheet is prepared at the end of each fiscal cycle to summarize the general ledger information needed to prepare financial information.
answer
Accounting Period Cycle (p.214)
question
The ending account balances of permanent accounts for one fiscal period are...
answer
...the beginning account balances for the next fiscal period. (p.214)
question
Example of a Temporary Account
answer
Rent Expense and other expense accounts (p.214)
question
Which accounting concept applies when expenses are reported in the same fiscal period that they were used to produce revenue?
answer
Matching Expenses with Revenue (p.216)
question
When Revenue is greater than total expenses, resulting in a net income, the Income Summary account has a ________.
answer
Credit Balance (p.216)
question
Information needed for recording the closing entries is obtained from the ____.
answer
Work Sheet's Income Statement and Balance Sheet Columns (p.216)
question
Income Summary is a ____.
answer
Temporary Account (p.216)
question
After the closing entries are posted, the Sales account balance should be _______.
answer
Zero (p.218)
question
After the closing entries are posted, the owner's capital account balances should be the same as shown ________.
answer
In the work sheet's Balance Sheet Debit Column. (p.221)
question
The accounts listed on a post-closing trial balance are _____.
answer
This that appear in the work sheet's Trial Balance columns. (p.227)
