Accounting I Chapter 8 Vocabulary TERM DEFINITION Accounting cycle The series of accounting activities included in recording financial information for a fiscal period. Audit An examination of financial records, accounts, and supporting documents to check their accuracy. Audit trail A paper or electronic path that provides a documented history of a transaction. Auditor The accountant who conducts the audit. Closing entries Journal entries used to prepare temporary accounts for a new fiscal period. Nominal accounts See temporary accounts. Permanent accounts Accounts used to accumulate information from one fiscal period to the next. Post-closing trial balance A trial balance prepared after the closing entries are posted. Public accounting firm An accounting business that helps other businesses with accounting issues. Temporary accounts Accounts used to accumulate information until it is transferred to the owner’s capital account.