Exercise 5.1 (Static) Accounting Terminology (LO5-1, LO5-2, LO5-3, LO5-4, LO5-5, LO5-6 LO5-7) Listed as follows are nine technical terms: . Liquidity . Adequate disclosure Income summary Nominal accounts . After-closing trial balance Interim financial statements .Real accounts N Closing entries • Dividends Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer "None" if the statement does not describe any of the items. a. The accounting principle intended to assist users in interpreting financial statements. b. A term used to describe a company's ability to pay its obligations as they come due. c. A term used in reference to accounts that are closed at year-end. d. A term used in reference to accounts that are not closed at year-end. e. A document prepared to assist management in detecting whether any errors occurred in posting the closing entries. f. A policy decision by a corporation to distribute a portion of its income to stockholders. g. The process by which the Retained Earnings account is updated at year-end. h. Entries made during the accounting period to correct errors in the original recording of complex transactions. A b C d 6 4.
Exercise 5.1 (Static) Accounting Terminology (LO5-1, LO5-2, LO5-3, LO5-4, LO5-5, LO5-6 LO5-7) Listed as follows are nine technical terms: . Liquidity . Adequate disclosure Income summary Nominal accounts . After-closing trial balance Interim financial statements .Real accounts N Closing entries • Dividends Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer "None" if the statement does not describe any of the items. a. The accounting principle intended to assist users in interpreting financial statements. b. A term used to describe a company's ability to pay its obligations as they come due. c. A term used in reference to accounts that are closed at year-end. d. A term used in reference to accounts that are not closed at year-end. e. A document prepared to assist management in detecting whether any errors occurred in posting the closing entries. f. A policy decision by a corporation to distribute a portion of its income to stockholders. g. The process by which the Retained Earnings account is updated at year-end. h. Entries made during the accounting period to correct errors in the original recording of complex transactions. A b C d 6 4.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Exercise 5.1 (Static) Accounting Terminology (LO5-1, LO5-2, LO5-3, LO5-4, LO5-5, LO5-6 LO5-7)
Listed as follows are nine technical terms:
.
Liquidity
Adequate disclosure
Income summary
Nominal accounts
.
After-closing trial balance.
. Interim financial statements
.Real accounts
Closing entries
Dividends
Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting
term described, or answer "None" if the statement does not describe any of the items.
a. The accounting principle intended to assist users in interpreting financial statements.
b. A term used to describe a company's ability to pay its obligations as they come due.
c. A term used in reference to accounts that are closed at year-end.
d. A term used in reference to accounts that are not closed at year-end.
e. A document prepared to assist management in detecting whether any errors occurred in posting the closing entries.
f. A policy decision by a corporation to distribute a portion of its income to stockholders.
g. The process by which the Retained Earnings account is updated at year-end.
h. Entries made during the accounting period to correct errors in the original recording of complex transactions.
SPEDUP
C
e
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education