Final Review 4

Match it! Select the correct answer from the pull down...Good luck!

An accounting period that begins on July 1 and ends on June 30 is a calendar-year accounting period.

A fiscal period may be one month, three months, six months, or even one year, but usually it is one year.

Which of the following accounts is not closed at the end of the accounting period?

Expenses decrease owner’s equity and are recorded as debits.

Permanent accounts start each accounting period with a zero balance.

Transferring the expense account balances to the Income Summary account is the ____.

The difference between the debit and credit amounts in an account is the account balance.

If Paul Abdou deposits $30,000 in a checking account in the name of his business, the two accounts affected are ____.