Match the terms that follow with the correct definitions.
-Financial statements prepared during the fiscal year for a period of less than twelve months
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

Interim statements are financial statements prepared during the fiscal year for a period of less than twelve months.

Answer: B
 Closing entries are journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts.

Answer: C
 Expenses are the costs incurred to generate revenue.

Answer: D
 Real or permanent accounts are accounts that represent the assets, liabilities, and equity of a company and have balances that carry over from one accounting period to the next.

Answer: E
 Drawing account is a temporary equity account that represents funds withdrawn by the owner from the business.

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

Answer: G
 Post-closing trial balance is a list of accounts and balances prepared after closing entries have been posted to ensure that the accounts are in balance.

Answer: H
 Accounting cycle refers to the process of recording, classifying, summarizing, and interpreting business transactions in order to generate financial statements.

Answer: I
 Expense and revenue accounts are temporary accounts used to track the costs and earnings of a business during an accounting period.

Answer: J
 Temporary-equity accounts are accounts that represent the equity of a company for a specific period of time, such as income summary or drawing account.

Match the Terms That Follow with the Correct Definitions