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Closing Entries

Author: Evan McLaughlin

Source: Instrumental “Drops of H2O ( The Filtered Water Treatment )" by J.Lang (feat. Airtone),” Creative Commons, http://ccmixter.org/files/djlang59/37792

Video Transcript
Terms to Know
Closing Entry

An entry made at the end of an accounting period that is used to close out a temporary account.

Drawing Account

An account that keeps a record of money taken out of the business by its owner or owners.

Expenses

Costs associated with operating or maintaining a company.

Revenue

Earnings from interest or from the sale of goods or services.

Temporary Accounts

Accounts whose balances are closed at the end of an accounting period and reopened at the beginning of the next period.