1.) What is the purpose of the closing process?

2.) What is an accrued liability?

3.) What is the difference between permanent accounts and temporary accounts, and why does an accounting system have both types of accounts?

4.) Describe the difference between external events and internal events in Accounting, and give two examples of each.

5.) What is the purpose of the statement of cash flows? List the three major categories of cash flows and give an example of a cash transaction for each category.