Accounting - Chapter 8 FILL IN BLANK

(blank) concept applies when a work sheet is prepared at the end of each fiscal cycle to summarize the general ledger information needed to prepare financial statements

Accounting period cycle

The journal entry to close Income summary when there is a net income is

debit Income Summary; credit owner's captital

The journal entry to adjust Supplies is

debit Supplies Expense; credit Supplies

Accounts used to accumulate information from one fiscal period to the next are

permanent accounts

After closing entries are posted, the owner's capital account balance should be the same as

shown on the balance sheet for the fiscal period

Income summary is a

temporary account

When the total expenses are greater than the total revenue,

the income summary account has a debit balance

After the adjusting entry for Supplies has been posted, Supplies Expense has an up-to-date balance, which is

value of supplies used during the fiscal period

Temporary accounts begin each new fiscal period with a

zero balance