LOS-1, LOS-2, LOS-3, LO5-4, LO5-5, LO5-6, LOS-7 EXERCISE 5.1 Accounting Terminology 5-1.105.2 1056 Exercises Listed as follows are nine technical terms used in this chapter. Liquidity Adequate disclosure Income Summary Real accounts Nominal accounts After-closing trial balance Interim financial statements. Closing entries Dividends Each of the following statements may (or may not) describe one of these technical terms. For e statement, indicate the accounting term described, or answer "None" if the statement does 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 pos ing 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 com plex transactions. Preparation