select the term that best fits each definition.
definition
1. journal entries used to prepare temporary accounts for a new fiscal period.
2. journal entries recorded to update general ledger accounts at the end of a fiscal period.
3. a financial statement showing the revenue and expenses for a fiscal period.
4. an accounting device used to analyze transactions.
5. reporting income when earned and expenses when incurred.
6. accounts used to accumulate information from one fiscal period to the next.
7. a list of accounts used by a business.
8. the cost of goods or services used to operate a business.
9. a person or business to whom a liability is owed.
10. a proof of the equality of debits and credits in a general ledger.
11. accounts used to accumulate information until it is transferred to the owner’s capital account.
12. a planned process designed to compile financial data and summarize the results in accounting records and reports.
13. transferring information from a journal entry to a ledger account.
14. a financial statement that reports assets, liabilities, and owner’s equity on a specific date.
15. an increase in equity resulting from the sale of goods or services.
chart with terms: accounting system, accrual basis of accounting, adjusting entries, balance sheet, chart of accounts, closing entries, creditor, expense, income statement, permanent accounts, posting, revenue, t account, temporary accounts, trial balance

Question

Accepted Answer

### 1.
# Brief Explanations:
Closing entries are journal entries to reset temporary accounts (like revenue, expense) to zero at the end of a fiscal period, preparing them for the new period.
# Answer:
closing entries

### 2.
# Brief Explanations:
Adjusting entries are made at the end of a fiscal period to update accounts (e.g., for accrued revenues/expenses) to ensure accurate financial statements.
# Answer:
adjusting entries

### 3.
# Brief Explanations:
The income statement shows a business’s revenue and expenses over a fiscal period, calculating net income/loss.
# Answer:
income statement

### 4.
# Brief Explanations:
A T - account is an accounting tool (shaped like a "T") used to analyze transactions by showing debits on one side and credits on the other.
# Answer:
T account

### 5.
# Brief Explanations:
Accrual basis of accounting recognizes revenue when earned (not when cash is received) and expenses when incurred (not when paid), matching revenues and expenses to the period they belong to.
# Answer:
accrual basis of accounting

### 6.
# Brief Explanations:
Permanent accounts (e.g., assets, liabilities, owner’s equity) carry over their balances from one fiscal period to the next, unlike temporary accounts which are closed.
# Answer:
permanent accounts

### 7.
# Brief Explanations:
A chart of accounts is a list of all accounts a business uses to record transactions, organized by category (e.g., assets, liabilities).
# Answer:
chart of accounts

### 8.
# Brief Explanations:
Expense is the cost of goods or services used to operate a business (e.g., rent, salaries, supplies), reducing equity.
# Answer:
expense

### 9.
# Brief Explanations:
A creditor is a person or business to whom a liability (debt) is owed, like a supplier who is owed money for goods purchased on credit.
# Answer:
creditor

### 10.
# Brief Explanations:
A trial balance is a list of all general ledger accounts with their debit and credit balances, used to prove that total debits equal total credits (equality of debits and credits) in the ledger.
# Answer:
trial balance

### 11.
# Brief Explanations:
Temporary accounts (revenue, expense, drawing) accumulate information for a single fiscal period and are closed (their balances transferred to owner’s capital) at the end of the period.
# Answer:
temporary accounts

### 12.
# Brief Explanations:
An accounting system is a planned process to compile financial data (transactions) and summarize it into records (ledgers) and reports (financial statements).
# Answer:
accounting system

### 13.
# Brief Explanations:
Posting is the process of transferring information from journal entries (where transactions are initially recorded) to the appropriate ledger accounts.
# Answer:
posting

### 14.
# Brief Explanations:
A balance sheet reports a business’s assets (what it owns), liabilities (what it owes), and owner’s equity on a specific date (e.g., end of month/year).
# Answer:
balance sheet

### 15.
# Brief Explanations:
Revenue is the increase in equity from the sale of goods or services (e.g., sales revenue, service revenue), representing the business’s earnings from its operations.
# Answer:
revenue

Sovi.AI - AI Math Tutor

QUESTION IMAGE

Question

Explanation:

1.

Answer:

2.