t Review Questions 1. Why are financlal statements prepared in a spedific order? What is that order? 2. What is a classified balance sheet? 3. What does liquidity mean? 4 What is the closing process? are temporary accounts? Are temporary accounts closed in the dosing process? 6. What are permanent accounts? Are permanent accounts closed in the closing process? 7. How is the Income Summary account used? Is it a temporary or permanent account? 8. What are the steps in the closing process? If a business had a net loss for the year, what would be the closing entry to close Income Summary and transfer the net loss to the Capital account? 9. 10. What types of accounts are listed on the post-closing trial balance? 11. What is the current ratio and how is it calculated