Ending your fiscal year with a net loss can be tough to deal with. The accounting, though, isn't any more complicated than ending on a net gain. The process of creating and then closing an Income ...

The term "temporary account" refers to items found on your income statement, such as revenues and expenses. "Permanent accounts" consist of items located on the balance sheet, such as assets, owners' ...

Closing entries transfer revenue and expense balances to the retained earnings account. This process resets the temporary account balances to zero for the new accounting period. Recording closing ...