| Accounting cycle | Recurring steps performed each accounting period, starting with analyzing transactions and continuing through the post-closing trial balance.
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| Closing entries | Entries recorded at the end of each accounting period to transfer end-of-period balances in revenue, expense, and withdrawal accounts to the capital account.
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| Closing process | Necessary end-of-period steps to prepare the accounts for recording the transactions of the next period.
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| Income Summary | Temporary account used only in the closing process to which the balances of revenue and expense accounts are transferred; its balance is transferred to the capital account.
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| Permanent accounts | Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed; also called real accounts.
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| Post-closing trial balance | List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
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| Pro forma financial statements | Statements that show the effects of proposed transactions and events as if they had occurred.
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| Temporary accounts | Accounts used to record revenues, expenses, and withdrawals; they are closed at the end of each period; also called nominal accounts.
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| Work sheet | Spreadsheet used to draft an unadjusted trial balance, adjusting entries, adjusted trial balance, and financial statements.
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| Working papers | Analyses and other internal documents prepared by accountants when organizing information for formal reports and financial statements.
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