What are the two purposes of closing entries
Week 3 Discussion
- What are the two purposes of closing entries? What classifications of accounts are not affected?
- What categories of assets and liabilities are shown on a typical classified balance sheet?
- The after closing trial balance will include what classifications of accounts?
- Explain why you do a trial balance.
- In a multiple-step income statement, what elements are presented and in what order?
- Explain the difference between a “perpetual” inventory system and a “periodic” inventory system. Name the accounts used in a periodic inventory system but not in a perpetual inventory system?