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Lesson 1: Course Orientation and Review of Accounting Cycle

Terminology Self-Check

This might be a good time to review some of the terms we used in this lesson.

 

Self-Check Activity

Enter the corresponding letter for the term in the box on the right into the box next to the definition on the left. Click the Submit button to see how you did.  You can click on the Try Again button to repeat this exercise.
  • A . Accrued Expenses
  • B . Accrued Revenues
  • C . Closing Process
  • D . Double-entry System
  • E . Post-closing Trial Balance
  • F . Posting
  • G . Prepaid Expenses
  • H . Trial Balance
  • I . Unearned Revenues

 

Solution
The process of transferring journal entries to the individual ledger accounts
Posting
Lists all of the general ledger accounts, lists the respective balances of each of the accounts, and is typically prepared at the end of each accounting period
Trial Balance
Expenses paid for in cash and recorded as assets before they are used or consumed
Prepaid Expenses
Expenses that have been incurred but not paid as yet in cash or recorded in the accounting records
Accrued Expenses
Revenues that have been earned but not yet received in either cash or recorded in the accounting records
Accrued Revenues
Revenues received in cash and recorded as liabilities before they are earned
Unearned Revenues
Zeros out the balances in all temporary accounts (revenue, expense, and dividend accounts) in order to prepare the recording and posting of transactions for the new accounting period
Closing Process
The last step to finalize the accounting period prior to recording business transactions in the next accounting period (often the next month)
Post-closing Trial Balance
Universally used in accounting to ensure that debits equal credits
Double-entry System

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