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Unformatted text preview: i. Why do we make closing entries? ii. What types of accounts are closed? Define a “nominal” account. Define a “real” account. iii. What is the Income Summary account? j. Post closing entries to general ledger k. Post-closing trial balance l. Reversing entries (optional) i. Why do some companies use reversing entries? ii. What does it mean to “make a reversing entry?” iii. What types of adjusting entries are reversed? What types of adjusting entries are not reversed? III. Cash-basis accounting versus accrual-basis accounting a. Under the cash basis, when do you recognize revenue? When do you recognize expenses? b. Under the accrual basis, when do you recognize revenue? When do you recognize expenses? c. Which method conforms with GAAP? Why?...
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This note was uploaded on 03/01/2010 for the course ACCT 30602E taught by Professor Darland during the Fall '09 term at Buena Vista.
- Fall '09