Question
1- Explain the closing process in accounting. (Include the STEP-BY-STEP closing process) 2) Why is it important to classify permanent and temporary accounts? (You may
1- Explain the closing process in accounting. (Include the STEP-BY-STEP closing process)
2) Why is it important to classify permanent and temporary accounts? (You may answer this by defining, contrasting, and comparing permanent accounts versus temporary accounts; What happens when temporary accounts are not closed? Why permanent accounts are not closed and when can they be closed?)
3) Discuss what is an Income Summary and how is this used during the closing process?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Question 1 The STEPBYSTEP closing process 1 The first step is to close out all the temporary or nominal accounts This includes revenue expenses and wi...
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Step: 2
Step: 3
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Accounting concepts and applications
Authors: Albrecht Stice, Stice Swain
11th Edition
978-0538750196, 538745487, 538750197, 978-0538745482
