Midterm Study Guide

An amount owed by a business

The account used to summarize the owner’s equity in a business

A business activity that changes assets, liabilities, or owner’s equity

A business paper from which information is obtained for a journal entry

A business that performs an activity for a fee

Journal entries used to prepare temporary accounts for a new fiscal period

• Adjusting entries

• Reversing entries

• Opening entries

• Closing entries

A form for recording transactions in chronological order

• Ledger

• Invoice

• Receipt

• Journal

The difference between total revenue and total expenses when total revenue is greater

A form on which a brief message is written describing a transaction

• receipt

• invoice

• statement

• memo

A trial balance prepared after the closing entries are posted

• is called a post-closing trial balance

• is called an adjusted trial balance

• is called a preliminary trial balance

• is called a regular trial balance