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What Accounts are used to accumulate information from one fiscal period to the next?
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What account does not close at the end of the period?
Real or permanent accounts are balance sheet accounts which have a continuous nature and accumulate data from period to period; such accounts are not closed at the end of the reporting period.
What does fiscal year mean?
Fiscal years means the minimum accounting period for which books of accounts are maintained and business activity is performed.
What do the balances of temporary accounts show?
changes in the owners capital for a single fiscal period
What is difference between nominal and real account?
Nominal Accounts are income statement accounts and include revenue, gain, expense & loss accounts. The balances of these accounts are closed as a rule to a summary account at the end of each fiscal year to determine the net income for the period and are included in retained earnings. The numbers in the nominal accounts will portray the performance or results of operations of a company for a particular period. Real Accounts are balance sheet accounts, which include assets and liabilities. The numbers in these accounts disclose the company's financial position: everything the company owns and owes.
Why does a business need to be consistent in the fiscal period it uses for its financial reports?
A business needs to be consistent in the fiscal period it uses for financial reports for purposes of comparison and accuracy. If the fiscal period changes, then it is difficult to compare the business's performance across different periods.
The ending account balance of permanent accounts for one fiscal period are the beginning account balances for the next fiscal period?
th ending account balances of permanent accounts for one fisical period?
What account does not close at the end of the period?
Real or permanent accounts are balance sheet accounts which have a continuous nature and accumulate data from period to period; such accounts are not closed at the end of the reporting period.
Revenue and expense accounts are considered temporary accounts because they?
they are temporary accounts because they are closed out at the end of each fiscal period.
What does fiscal year mean?
Fiscal years means the minimum accounting period for which books of accounts are maintained and business activity is performed.
What do the balances of temporary accounts show?
changes in the owners capital for a single fiscal period
Closing entries are necessary to a business so?
the accounts in the general ledger are updated and ready for the next fiscal period.
How do you journalize adjusting entry license future year?
Journal Entries recorded to update general ledger accounts at the end of a fiscal period are called adjusting entries.
What is the purpose of the adjustments column in the worksheet?
The purpose of the adjustments column in the worksheet is for the necessary adjustments for supplies and pre-paid insurance. It is also used the adjustment of merchandise inventory accounts to begin a new fiscal year.
What is a financial period?
Fiscal year
What is financial period?
Fiscal year
What is difference between nominal and real account?
Nominal Accounts are income statement accounts and include revenue, gain, expense & loss accounts. The balances of these accounts are closed as a rule to a summary account at the end of each fiscal year to determine the net income for the period and are included in retained earnings. The numbers in the nominal accounts will portray the performance or results of operations of a company for a particular period. Real Accounts are balance sheet accounts, which include assets and liabilities. The numbers in these accounts disclose the company's financial position: everything the company owns and owes.
Why does a business need to be consistent in the fiscal period it uses for its financial reports?
A business needs to be consistent in the fiscal period it uses for financial reports for purposes of comparison and accuracy. If the fiscal period changes, then it is difficult to compare the business's performance across different periods.
