All transactions between the company and its shareholders are

considered financing transactions. This includes payment of

dividends, the issuance of stock, and any subsequent stock
repurchase.

Financing transactions affect only the balance sheet; they do not

affect the income statement.

Cash received or paid before recognition of revenue or expense:

Prepaid expenses

Unearned revenues

Cash received or paid after recognition of revenue or expense

Accrued expenses

Accrued revenues

The trial balance is a listing of all accounts and their balances at a point in
time.

Its purpose is to prove the mathematical equality of debits and credits, provide a
useful tool to uncover any accounting errors, and help prepare the financial
statements

The closing process refers to the zeroing out of revenue and expense
accounts (the temporary accounts) by transferring their ending balances to
retained earnings.

 Balance sheet accounts carry over from period to period and are called
permanent accounts.)
The result is that all income statement accounts begin the next period with zero
balances