41.The closing process is a step in the accounting cycle that prepares accounts for the
next
accounting period.
42.Closing entries are required at the end of each accounting period to close all ledger accounts.
43.Closing entries are necessary so that retained earnings will begin each period with a zero balance.
44.Permanent accounts carry their balances into the next accounting period.
45.If a company plans to continue business into the future, closing entries are not required.
46.The first five steps in the accounting cycle include analyzing transactions, journalizing, posting, preparing an unadjusted trial balance, and recording adjusting entries.
47.The last four steps in the accounting cycle include preparing the adjusted trial balance, preparing financial statements, and recording closing and adjusting entries.
48.A classified balance sheet organizes assets and liabilities into important subgroups that provide more information to decision makers.
49.Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle whichever is longer.
50.Intangible assets are long-term resources that benefit business operations that usually lack physical form and have uncertain benefits.