At the End of the fiNancial Period, the Payroll Accountant

question 25

Multiple Choice

At the end of the financial period, the payroll accountant records the ________ of the employee's pay that is earned but not yet paid; in the next financial period, this entry is ________.

• A) Accrual; reversed
• B) Reversal; accrued
• C) Total; carried forward
• D) Amount; deleted

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thus preparing the books for the next period.

Unadjusted Trial Balance

A preliminary list of all accounts and their balances before any adjusting entries are made, used to verify the equality of debits and credits.

Closing Entry

A closing entry is an accounting action that transfers the balances of temporary accounts to permanent accounts, thereby resetting the temporary accounts to zero for the start of the next accounting period.

Expense Accounts

Accounts that track the costs incurred by a business in its operational activities, which are then used to calculate net income by subtracting them from revenues.