1. Closing Entries and the Postclosing Trial Balance FLASHCARDS

2. Closing entries Journal entries that transfer the results of operations (net income or net loss) to owner’s equity and reduce the revenue, expense, and drawing account balances to zero Closing entries

3. Interpret To understand and explain the meaning and importance of something (such as financial statements) Interpret

4. Income Summary account A special owner’s equity account that is used only in the closing process to summarize the results of operations Income Summary account

5. Postclosing trial balance A statement that is prepared to prove the equality of total debits and credits after the closing process is completed Postclosing trial balance

6. After-closing trial balance Another term for postclosing trial balance After-closing trial balance

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