adjusting entry

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					ACCT 301 - Intermediate Accounting I        Spring 2002
Chapter 3 quiz study questions

1. Define/describe the following: (obj.1)
        event
        transaction
        real account
        nominal account
        general ledger
        subsidiary ledger
        journal
        posting
        trial balance
        adjusted trial balance
        post-closing trial balance
        adjusting entry
        balance sheet
        income statement
        cash flows statement
        statement of retained earnings
        closing entry

2. Identify the normal balance for each account type: Asset, Liability, Equity, Revenue,
   Expense. (obj.2)

3. What is the purpose of adjusting entries? At what point in time are adjusting entries
   prepared? (obj.5)

4. What purpose does adjusting entries for prepayments serve? (obj.5)

5. What purpose does adjusting entries for accruals serve? (obj.5)

6. What is the purpose of the adjusted trial balance? (obj.5)

7. What is the purpose of the closing process? (obj.6)

				
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