Journal Entries and Closing

Journal entry and closing pages explain how accounting moves from transaction capture to period-end cleanup. This section covers the mechanics behind original entries, accrual basis accounting, adjusting entries, and closing entries.

Use this section when the main question is about timing, matching, period cutoffs, or how temporary accounts get reset between reporting periods.

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• Journal Entry
• Accrual Basis Accounting
• Adjusting Entry
• Closing Entry

In this section

• Accrual Basis Accounting
  Accounting method that recognizes revenue when earned and expenses when incurred rather than when cash changes hands.
• Adjusting Entry
  Period-end journal entry used to align revenues, expenses, assets, and liabilities with the correct reporting period.
• Closing Entry
  End-of-period entry that transfers temporary-account balances and resets revenue and expense accounts for the next period.
• Journal Entry
  Record of an accounting transaction showing the accounts affected and the debits and credits used to capture it.