Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 1

Accounting through Terminology
Listed below are nine technical terms used in this chapter:

Each of the following statements may (or may not) describe one.f these technical terms.or each statement, indicate the accounting term described, or answer "None" if the statement does not describe any of the items.
a.he accounting principle intended to assist users in interpreting financial statements.
b. term used to describe a company's ability to pay its obligations as they come due.
c. term used in reference to accounts that are closed at year-end.
d. term used in reference to accounts that are not closed at year-end.
e. document prepared to assist management in detecting whether any errors occurred in posting the closing entries.
f. policy decision by a corporation to distribute a portion of its income to stockholders.
g.he process by which the Retained Earnings account is updated at year-end.
h.ntries made during the accounting period to correct errors in the original recording of complex transactions.