Sections:

Posting Closing Entries and Preparing a Post-closing Trial Balance, Page 18

Key Terms

The key terms used in the unit are listed below: 

  • Income summary: The Income summary account is the income statement in the ledger summarizing the revenue and expenses for the period. 
  • Post closing trial balance: The purpose of the post closing trial balance is to make sure that the ledger is in balance at the beginning of the next period.