Question

Listed as follows are nine technical terms used in this chapter. Liquidity Adequate disclosure Income Summary Nominal accounts After-closing trial balance Interim financial statements Real accounts Closing entries Dividends Each of

the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer "None" if the statement does not 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. e. A term used in reference to accounts that are not closed at year-end. A document prepared to assist management in detecting whether any errors occurred in post- 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.