1. What is the purpose of closing the books?
2. What is the purpose of closing entries?
3. Distinguish between temporary and permanent accounts.
4. Upon completing closing entries the balance in temporary accounts will be ?
5. In this chapter the income summary account was introduced. What purpose does it serve?
6. List the describe the four steps in the closing process.
7. Are dividends an expense? Why or why not? Explain.
8. What is the purpose of the post-closing trial balance? Does it include any temporary accounts? Explain
9. How does the classified balance sheet compare to the balance sheet introduced at the end of chapter one?
10. Define the term assets. Identify and describe the four subcategories of assets.
11. What determines the order or presentation of asset accounts?
12. Describe the assets included in the property, plant, and equipment category.
13. Describe each of the following terms: depreciation and accumulated depreciation. What concept is used to describe the difference between these two accounts?
14. Compare and contrast an intangible asset and tangible asset. Provide examples of each.
15. Compare and contrast current and long-term liabilities.
16. Explain the relationship between current liabilities and current assets.
17. Identify and describe the two categories corporations divide stockholders equity into.
18. Describe the account called retained earnings. Is it an asset, liability, or equity account? Why?