An entry made before finalizing the books for the period to apportion amounts of revenue or expense to the proper accounting periods or operating divisions.

An examination of the accounting records and internal controls of a business in order to be able to express an opinion about the business's financial position and results of operation.

To cause an account to have a nil balance by means of a journal entry.

An account that must be considered along with a given asset account to show the true book value of the asset account.

A method of calculating the annual depreciation of an asset as a fixed percentage of the remaining value of the asset.

The decrease in value of a fixed asset over time.

The temporary account to which the total revenues and the total expenses are transferred during the closing process.

An account with a balance that does not carry into the next fiscal period, for example, Revenue, Expense, and Drawings accounts.

The trial balance that is taken after the closing entries have been posted.

An expense, other than for inventory, with benefits that extend into the future, paid for in advance.

An account the balance of which is not closed out at the end of the fiscal period but which is carried forward into the succeeding period.

A method of calculating the depreciation of an asset whereby the depreciation is apportioned equally to each year of the asset's life.