Expert Solutions

1. How is the Income Summary account used in the closing procedure?

2. Where does the accountant obtain the data needed for the closing entries?

3. Why does the accountant record closing entries at the end of a period?

4. Where does the accountant obtain the data needed for the adjusting entries?

5. What three procedures are performed at the end of each accounting period before the financial information is interpreted?

6. Briefly describe the flow of data through a simple accounting system?

7. Name the steps of the accounting cycle.

8. What is the accounting cycle?

9. What account appears on a post-closing trial balance?

10. Why is a post-closing trial balance prepared?