The accounting equation displays that all assets are either financed by borrowing money or
paying with the money of the company's shareholders.
Asset: a useful or valuable thing, person, or quality
1. property owned by a person or company, regarded as
In this discussion we will be talking about closing entries. As we move forward we will see what
closing entries are, what accounts are closed, how are closing entries done and the result of closing
entries. We will also take a look at the difference betw
The reason for the closing entries is to ensure that each revenue and expense account will
begin the next accounting year with a zero balance. The closing entries require that a debit be
entered into each of the temporary accounts having a credit balance.