Match the terms that follow with the correct definitions.
-The account used to record amounts taken out of the business by the owner
A)Interim statements
B)Closing entries
C)Expenses
D)Real or permanent accounts
E)Drawing account
F)Income Summary
G)Post-closing trial balance
H)Accounting cycle
I)Expense and revenue
J)Temporary-equity accounts

Question

Quizplus · Accepted Answer

The drawing account is used to record amounts taken out of the business by the owner.

Answer: I
 Expense and revenue accounts are used to record the company's expenses and revenues.

Answer: D
 Real or permanent accounts are balance sheet accounts that carry over from one accounting period to the next and are not closed at the end of the accounting period.

Answer: F
 Income Summary is a temporary account used to close out revenue and expense accounts at the end of the accounting period.

Answer: J
 Temporary-equity accounts are accounts used to track profits or losses for an accounting period and are closed at the end of the accounting period.

Match the Terms That Follow with the Correct Definitions