VOCABULARY: Understanding Closing Procedures

What procedures do accountants perform before converting accounting records into financial
statements? Match terms a-h below to the relevant activity 1-8:

a) reconciling accounts f) preparing an adjusted trial balance

b) physically counting inventory g) preparing an adjusted trial balance
c) general error correction h) purging information that is no longer
d) classification error correction needed
e) closing the books

1. Checking every individual stock item b.

2. Making a list of all account balances in general ledger before any adjusting entries are made f.
3. Making a list of all company accounts that will appear on financial statements g. unadjusted trial
4. Transferring balances from temporary to permanent accounts e. balance

5. Correcting misplaced decimals c.

6. Comparing two sets of accounts to ensure that the balances are in agreement a.
7. Placing an entry under a correct account d.
8. Removing data from the company file h.

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