Chapter 5 The Accounting Cycle Which accounts appear in a company's after-closing trial balance? How do these accounts differ from those reported in an adjusted trial balance? Can a company be profitable but not liquid? Explain. What are interim financial statements? Do accounts that appear in a company's interim balance sheet require any special computations to he reported correctly? Explain. Explain the accounting principle of adequate disclosure. How does depreciation expense differ from other operating expenses? Explain the need for closing entries and describe the which temporary owners' equity accounts are closed at year-end. Explain the significance of measuring a company's return on equity. Explain several purposes that may be served by preparing a worksheet (or using computer software that achieves the goals of a worksheet). *Supplemental Topic, "The Worksheet