400432
| Question | Answer |
| 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. | adjusting entry |
| 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. | audit |
| To cause an account to have a nil balance by means of a journal entry. | closing an account |
| An account that must be considered along with a given asset account to show the true book value of the asset account. | contra / valuation |
| A method of calculating the annual depreciation of an asset as a fixed percentage of the remaining value of the asset. | declining balance |
| The decrease in value of a fixed asset over time. | depreciation |
| The temporary account to which the total revenues and the total expenses are transferred during the closing process. | income summary |
| An account with a balance that does not carry into the next fiscal period, for example, Revenue, Expense, and Drawings accounts. | nominal account |
| The trial balance that is taken after the closing entries have been posted. | post-closing |
| An expense, other than for inventory, with benefits that extend into the future, paid for in advance. | prepaid expense |
| 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. | real account |
| A method of calculating the depreciation of an asset whereby the depreciation is apportioned equally to each year of the asset's life. | straight-line |
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