Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition

EXERCISE 4-10

Purpose: (L.O. 1 thru 7) This exercise will quiz you about terminology used in this chapter.

A list of accounting terms with which you should be familiar appears below:

Classified balance sheet	Long-term liabilities (long-term debt)
Closing entries	Operating cycle
Correcting entries	Permanent (real) accounts
Current assets	Post-closing trial balance
Current liabilities	Property, plant, and equipment
Income Summary	Reversing entry
Intangible assets	Stockholders' equity
Liquidity	Temporary (nominal) accounts
Long-term investments	Worksheet

Instructions

For each item below, enter in the blank the term that is described.

1. _____________________________________A multiple-column form that may be used in the adjustment process and in preparing financial statements.
2. _____________________________________Entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholders' equity account. For a corporation, the temporary accounts are closed to Retained Earnings.
3. _____________________________________A list of permanent accounts and their balances after closing entries have been journalized and posted.
4. _____________________________________Revenue, expense, and dividend accounts whose balances are transferred to retained earnings at the end of an accounting period.
5. _____________________________________Accounts whose balances are carried forward to the next accounting period. Balance sheet accounts.
6. _____________________________________A ...