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Closing Entry
A closing entry is an accounting procedure used at the end of an accounting period to transfer the balances from temporary accounts to permanent ones, thus preparing the accounts for the next period.
Prepaid Insurance
An asset account that reflects insurance payments that are made in advance for future insurance coverage periods.
Retained Earnings
The portion of net income that is not distributed to shareholders but instead reinvested in the business or used to pay off debt.
Insurance Expense
The cost incurred by an entity to obtain insurance coverage, recognized as an expense over the period the insurance provides coverage.
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