Match the following terms with the appropriate definition.

Question

A) Working papers
B) Closing entries
C) Accounting cycle
D) Work sheet
E) Income summary
F) Temporary accounts
G) Permanent accounts
H) Pro forma statements
I) Operating cycle of a business
J) Post-closing trial balance

1. Various analyses and internal documents prepared by accountants when organizing
information for internal and external decision makers.
2.The time span from when cash is used to acquire goods and services until cash is received
from the sale of those goods and services.
3. A temporary account only used for the closing process that contains a credit for the sum of
all revenues and a debit for the sum of all expenses.
4. A widely used working paper that is a useful tool for preparers in working with accounting
information, usually not available to external decision makers.
5. A list of permanent accounts and their balances from the ledger after all closing entries are
journalized and posted.
6. Recurring steps in preparing financial statement performed each accounting period,
beginning with analyzing transactions and ending with a post-closing trial balance or reversing
entries.
7. Entries used to transfer end-of-period balances in revenue, expense, and dividends accounts
to the permanent retained earnings account.
8. Statements that show the effects of proposed transactions as if the transactions had already
occurred.
9.Accounts that report on activities related to one or more future accounting periods; they
carry their ending balances into the next period.
10. Accounts that accumulate data related to one accounting period only; they include income
statement accounts, dividends, and the Income Summary account.

Answer 1

1. A) Working papers
2. I) Operating cycle of a business
3. E) Income summary
4. D) Work sheet
5. J) Post-closing trial balance
6. C) Accounting cycle
7. B) Closing entries
8. H) Pro forma statements
9. G) Permanent accounts
10. F) Temporary accounts