--%>
Assignment Help - homework help

Closing entry for financial accounting

A journal entry that moves the effects of revenues or expenses to the owners' equity account. Only temporary account that is on the income statement is closed. The purpose of a closing entry is twofold. First, it moves revenue to retained earnings on the balance sheet. Second, it zeros out the income statement account. The temporary account is used to collect revenues and expenses for the accounting period. To do that correctly, they must start with nothing and then be increased or decreased by the business trans- actions for the period. Then, at the end of the period, these accounts must be made ready for the next accounting period by getting the balance to zero.

 

   Related Questions in Financial Accounting

  • Q : Demerits of implementing Uniform Costing

    Write down the demerits of implementing Uniform Costing?

    		•
  • Q : Case study of a pharmaceutical group in

    The XYZ Group, a supplier of pharmaceutical equipment, systems and services, has its head office in London and primary production facilities in the US. The company also has a successful subsidiary in South Africa, which was established in 1990. XYZ South Africa does n

    		•
  • Q : REDUMPTION OF DEBENTURS WHAT IS

    WHAT IS REDUMPTION? AND WHAT ARE THE CONDITIONS?

    		•
  • Q : Incremental cash flow How the concept

    How the concept of lost sales can be related to the definition of incremental cash flow.

    		•
  • Q : What is Asset Management Asset

    Asset Management: The Asset management has two common definitions, one associating to advisory services and the other associated to corporate finance. In the initial instance, an advisor or financi

    		•
  • Q : Success and failure of the employees

    What are the reasons for the success and failure of the employees ?

    		•
  • Q : Calculate the PV You expect the price

    You expect the price of the stock 3 years from now to be $119.04 (i.e., you expect P ˆ   3  ?? = $119.04). Discounted at a 10% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $119.04.&nb

    		•
  • Q : What is Purchase What is Purchase .

    What is Purchase. Briefly state the definition of it?

    		•
  • Q : Please help me he following information

    he following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depreciation (1,800,000) (1,350,000) Depreciation expense 560,000 Gain on disposal of PPE 65,000 The asset disposed of had a cost

    		•
  • Q : Financial and Operational measures of

    State some of financial and operational measures MNC can take minimize the political risk linked with the foreign investment project?

    		•